Jaguar Employees Chose Pay Freeze Over Job Cuts

Jaguar Land Rover employees used their democratic right to vote and chose to accept a pay freeze and reduced workhours over possible job cuts. 70 percent of the nearly 9,000 company employees in the Unite and GMB unions backed the proposal made by JLR, reported.

"The choice for our members was clear: further mass redundancies or what is undoubtedly some short-term pain in order to secure the future for our members and their families. Only the latter could have been in the best interests of our members," union representatives said in a statement.

The measure, which states that pay will be frozen until 2010, is to be applied effective immediately. The agreement reached by the two parties also mentions the reduction of the work week to four days and the cancellation of bonuses for almost 2,400 employees.

"This is an important step for us as a stand-alone business. It also confirms our determination as a team to steer Jaguar Land Rover through these extraordinary and challenging times, so that our business is ready to take advantage when the downturn finally ends," David Smith, Jaguar Land Rover CEO was quoted as saying by

The British manufacturer already fired some 500 people in January, in addition to the 850 who left the company in December 2008. The current agreement is part of the company's policy to avoid as much as possible future job cuts.

Worldwide, Jaguar Land Rover reported 35 percent in the last quarter of 2008 and is expecting a further 30 percent plunge this year, while British automotive industry sales were down 58 percent in January, compared to the same month of 2008.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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