The union Unite has negotiated a pay deal to beat inflation over the next three years for 22,000 workers across Rolls Royce.
The union has agreed an increase of 3.7 per cent for this year (2018). Next year (2019) it will be in line with RPI (the Retail Price Index), with a minimum of 1.5 per cent and a maximum of 4 per cent and then 2020 will be RPI plus a quarter – again, with a minimum of 1.5 per cent and a maximum of 4 per cent.
Unite reached agreement with the company following months of talks. The union also reached an agreement on changes to the company’s pension schemes. Rolls-Royce will keep its final salary scheme open for current active members until at least January 2024.
The company will also, from 2021, increase its contributions to the savings of the 10,000 employees enrolled in defined contribution schemes. Under changes to the scheme, pension savings for younger people will also increase.
Unite regional officer Tony Tinley said: “Unite has negotiated a three year pay deal for thousands of Rolls Royce workers that beats inflation. At a time when pay is falling flat and employers are putting pressure on your conditions it pays to have a well organised union in the workplace to negotiate a good deal on your behalf.”