JCB shop-floor workers accept new pay proposal

Company’s UK employees accept 2.6% pay rise as part of newly agreed three-year wage deal

JCB shop-floor employees have voted to accept a 2.6% pay rise for 2014 as part of a newly-agreed three-year wage deal.

The agreement on the pay proposal was reached following a vote by GMB members this week and will see around 3,200 shop-floor employees receive the pay rise from 1 January 2014.

The increase is linked to November’s Retail Price Index (RPI), which was announced on Tuesday 17 December. Increases in 2015 and 2016 will also be linked to those years’ respective November RPI figures.

The latest deal will come into force at the beginning of January following the expiry, on 31 December, of a three-and-a-half-year pay deal agreed in 2010, which was the longest pay deal ever agreed at JCB.

The deal affects employees at JCB’s factories in Rocester, Uttoxeter, Cheadle, Rugeley, Wrexham and Foston in Derbyshire.

Chief executive officer designate, Graeme Macdonald (pictured), who takes over as CEO on 1 January, said: ‘We are pleased to have reached agreement again on a long-term pay deal for JCB’s UK shop-floor employees.

‘It’s very welcome news and gives us the stability and forward visibility we need to plan ahead as we gear up to face the challenges and opportunities we will face in 2014 and beyond. The agreement also demonstrates a very responsible approach by all concerned.’

The new deal comes on the back of an announcement that JCB are to invest £150 million in the next five years to create 2,500 jobs expanding their UK manufacturing operations.

GMB works convenor Gordon Richardson said: ‘A three-year pay deal does give us some guarantees for the future. This year’s team of GMB negotiators for the group has achieved an excellent outcome under some very tough bargaining conditions.

‘The deal compares very favourably to those being struck at other companies both regionally and in the UK, but our members have worked very hard over the term of the last deal and the outcome of the latest negotiations is a reflection on their efforts.’

Meanwhile, in a separate announcement, JCB’s UK workers heard today that they are to receive a £400 Christmas bonus. Around 5,000 employees at the firms 11 plants will share in the festive payout, which is worth a total of £2 million.

JCB chairman Lord Bamford said: ‘At the start of this year we anticipated that the business would face a number of economic headwinds and that has certainly been the case with trading being tougher than expected. However, while certain markets have slowed, we are seeing growth in other parts of the world, which is very encouraging.

‘I’m delighted that the company is able to award a Christmas bonus in 2013 and I thank everyone for their commitment and hard work this year.’