Tata Motors reaches pay deal with Jaguar Land Rover union

Tata Motors-owned British car maker Jaguar Land Rover Automotive Plc (JLR) has concluded a deal on pay and pensions with union representatives, after revising the offer, JLR said in a joint statement with UNITE, which represents the bulk of the company's UK workforce.

The Tata Motors unit was facing threats of industrial action after the unions rejected the management's pay offer last month. Tata Motors draws three-fourths of its revenue and all its profit from the British unit.

''Jaguar Land Rover and UNITE have concluded detailed pay and conditions negotiations, a revised offer has been made by the company that will be unanimously recommended by UNITE to its members,'' the company said.

The pay offer includes recognition of JLR's recent performance for employees and agreements on working practices with UNITE that ensure that the company can meet its business plan commitments, it said.

JLR will give a pay hike of 4.5 per cent in the first year of a two-year deal, plus a bonus of £825 per employee. In the second year, workers will get the higher of either 3 per cent or Retail Price Index measure of inflation plus 0.5 per cent.