Workers at Land Rover, the car manufacturer, staged a one-day strike on 26 January 2004 in pursuit of a higher pay increase. The industrial action halted production at Land Rover’s main plant in Solihull in the West Midlands. About 8,000 workers were involved.
UK trade unions representing employees of car maker Land Rover have organised escalating levels of industrial action over a pay dispute, including a 24-hour strike held in January 2004.
Workers at Land Rover, the car manufacturer, staged a one-day strike on 26 January 2004 in pursuit of a higher pay increase. The industrial action halted production at Land Rover’s main plant in Solihull in the West Midlands. About 8,000 workers were involved.
The Ford-owned company has offered its employees a pay increase of 6.5% over two years from October 2003 - 3.5% in the first year followed by 3% or the increase in the retail prices index in the second year - but this was rejected by union members in a ballot held in October 2003. The unions representing Land Rover employees - the Transport and General Workers’ Union (TGWU), Amicus and the GMB general union - argued that the offer would not give Land Rover employees parity with workers at Jaguar, which is also owned by Ford.
In December, a majority of union members at Land Rover voted in favour of industrial action. Dave Osborne, TGWU national secretary, who also chairs the Land Rover joint negotiating committee, said that the result was 'a measure of the real anger that our members feel towards a pay offer that fails to fairly reward the major contribution that our members have made to the changing fortunes of the company. Less than two years ago the company was returning losses of USD 250 million. Land Rover today is the only profitable part of Ford’s UK Premier Automotive Group.'
The vote in favour of industrial action led to the introduction of an overtime ban before Christmas, and a refusal to operate the flexible working time agreement at the Solihull plant (UK0205104F) from 5 January.
In mid-January 2004, the unions announced plans for a 24-hour strike beginning on 26 January. Mr Osborne said that the unions had not taken the decision to strike lightly, but that it was necessary 'in view of the company’s reluctance to reopen negotiations'.
Land Rover workers walked out at 06.00 on 26 January - reportedly the company's first stoppage since 1988 - and mounted picket lines outside the Solihull plant and the company’s facility in Gaydon, Warwickshire, which is largely staffed by managers and other white-collar staff.
However, Land Rover was reported as saying that its offer was final and 'significantly above' the current rate of inflation and industry settlements in the UK. The company said that its workers enjoyed a comprehensive package of employment benefits that put them at the top of the car industry pay league. It warned that industrial action could put the long-term future of the Solihull plant at risk as new investment would be 'increasingly difficult' to justify.
The following day, union leaders announced a second 24-hour stoppage and, at the same time, called for the resumption of talks to avert further industrial action. Duncan Simpson, national officer of Amicus, said in a statement: 'So far, Land Rover have only offered to clarify the existing pay offer, but we’ve written to the company today to urge them to enter into meaningful pay negotiations to secure the long-term future of Land Rover in the West Midlands.' The second 24-hour stoppage was due to take place on 9 February unless there was a breakthrough in negotiations with the company.
Ford bought Land Rover from BMW in 2000 (UK0005174F). Production of the Freelander model is due to move to Ford’s Halewood plant in Merseyside in 2006.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Pay dispute at Land Rover, article.
