Over 1,200 workers at Rolls-Royce have won a record 17.6% pay package after a deal was agreed between Unite Union and the luxury car brand.
Workers at its factory in Goodwood, West Sussex, will get a salary boost of 10% and a one-off payment of £2,000 from January 2023.
The increase will mean a typical Grade 3 worker at the Goodwood factory, which builds the Rolls-Royce Ghost, Rolls-Royce Phantom and Rolls-Royce Cullinan, will see their pay increase by around £3,205.
The increase comes after Unite Union members at the factory threatened strike action as they had “been "repeatedly denied a proper pay rise".
Under the leadership of Unite’s general secretary, Sharon Graham who was elected last year, the workers mounted a campaign to secure a fairer share of the car manufacturer’s profits.
Rolls-Royce Motor Cars, which is owned by BMW, made £13.5billion in the first half of 2022.
A consultative ballot by the union had seen a 98% vote in favour of industrial action if the demand for a pay rise in line with inflation was not met.
Unite Union said the agreement was the “largest” single-pay deal in the history of the Goodwood plant which opened in 2003.
Ms Graham said: “This is a top notch pay deal for the Rolls-Royce workforce. Rolls-Royce Motor Cars are famous and iconic because of the workers’ craft and expertise.
“For years the workers had been underpaid and undervalued but that’s changing. The union has won the best pay deal since the site opened.”
“This is a testament to the organising efforts of the Unite reps at Goodwood. It’s also proof that our union’s laser sighted focus on jobs, pay and conditions is winning for workers.
The union added that the agreement closed the gap "considerably" between workers at Rolls-Royce and its competitor Aston Martin.
During the course of the campaign, Unite says its membership saw a 70% increase and following the intensive negotiations with management over 80% of Unite members accepted the 10% deal.
According to Unite, the one-year deal is worth between 14.8% and 17.6% for the grades represented by Unite.
This win is the latest stage of an ongoing campaign to raise pay at Goodwood in line with union-recognised rates elsewhere in the premium sector.
Unite regional coordinating officer Scott Kemp said: “Despite everything thrown at them, members showed the resolve needed to win this historic deal.
“For years workers at Goodwood have made the world’s most expensive cars while being paid the worst in the premium end of the industry.
“Goodwood is the so-called House of Luxury and its high time workers had their well-earned share of that reflected in their pay and conditions.”
In a statement about the outcome, Rolls-Royce Motor Cars said it was “pleased” that Unite had “supported and recommended a positive pay deal”.
It said: “We can confirm that a pay rise of 10% will be awarded to all those covered by our collective bargaining agreement from January 2023. Negotiations were cordial and constructive throughout."
