Staff at Jaguar Land Rover (JLR) are being balloted following a pay dispute.
The ECHO understands the company has asked to change an agreed pay deal with staff. A letter circulated among Unite the Union members at JLR's Halewood factory, which was shared with the ECHO, states the car manufacturer previously agreed to raise staff's pay by 12.2% but is now offering a 6% pay rise, plus a lump sum.
The letter states: "In the meetings, JLR have asked that pay for Year 2 be changed to a 6% uplift on your rate and a £5,000 sum with banked hours reduced to 100. We have stressed how disappointed we are with this approach and that you, the most important people, will have to be balloted."
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A spokesperson for Unite confirmed staff at the Halewood plant are being balloted. They told the ECHO: "Unite is in the process of balloting its members at Jaguar Land Rover over the proposed pay increase for this year. This is a highly complicated situation, and the union is attempting to balance both the short and long-term interests of our members".
According to the letter and staff at JLR who have contacted the ECHO, the pay deal that was previously negotiated and agreed was a rise of 12.2% - representing the Retail Price Index inflation level of 11.7% plus 0.5%. However, the letter states that the revised proposal of a 6% rise plus a £5,000 sum will be JLR's final offer and there will be no room for negotiation.
The letter adds that JLR has told the union in meetings that the company is "not in a good place financially". It also states: "They have told us about production issues, potential for the future and the present order book".
In May, the ECHO reported that JLR posted a loss of over £400m in its latest financial year, citing a global computer chip shortage and Russia's war with Ukraine. It reported a pre-tax loss of £455m, which included an 'exceptional charge' of £43m for its business in Russia.
A spokesperson for Jaguar Land Rover said: "Like all businesses, we are monitoring global economic conditions which are evolving very quickly in 2022. We can confirm that after discussions with our Trade Union, we have presented a revision to our Pay & Conditions deal which will be taken to its members for ballot.”
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