On 9 February 2004, employees of the car manufacturer Land Rover staged a second 24-hour strike over pay. The industrial action halted production at Land Rover’s main plant in Solihull in the West Midlands. The previous stoppage had taken place two weeks previously (UK0402101N [1]).[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/pay-dispute-at-land-rover
In February 2004, following a second 24-hour strike at car manufacturer Land Rover in the UK, negotiations between management and trade unions paved the way for a further ballot in which Land Rover employees voted to accept the company’s 2003 pay offer by a two-thirds majority.
On 9 February 2004, employees of the car manufacturer Land Rover staged a second 24-hour strike over pay. The industrial action halted production at Land Rover’s main plant in Solihull in the West Midlands. The previous stoppage had taken place two weeks previously (UK0402101N).
The Ford-owned company had 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 had been rejected by union members in a ballot. 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.
Following the second stoppage, a meeting of the Land Rover joint negotiating committee (JNC) took place on 10 February. Negotiations resulted in agreement that a 'business competitiveness' statement, which highlighted the need for improved performance and working practices and which formed part of the company’s pay offer, should be withdrawn. Instead, the 'shared objective of making Land Rover a world class business' would be the subject of discussions at the JNC. The pay and conditions elements of the company’s offer remained unchanged. The unions agreed to reballot their members on whether they were now prepared to accept the pay offer, but without recommending acceptance.
Union members at Land Rover subsequently voted in favour of accepting the offer, by 4,326 votes to 2,379 on an 86% turnout. The vote brought to an end the unions’ continuing overtime ban and suspension of flexible working arrangements.
Eric McDonald, regional industrial organiser of the TGWU, said in a statement: 'The company have made a substantial change in the business competitiveness statement and its implications. As a consequence the members have voted to accept the amended offer. We are pleased that the dispute has now been settled and maintain the view that this could have been avoided if the company were willing to reopen negotiations earlier.' According to the TGWU, the settlement 'includes agreement to negotiate any changes to working practices with the unions'.
Amicus national officer Duncan Simpson welcomed the agreement. He said: 'We can now concentrate on securing a future for our members at Solihull and Gaydon [Land Rover’s research and development facility in Warwickshire]. We will be seeking a commitment from the company for long-term investment in new products for both centres.'
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Land Rover employees accept pay deal, article.
