Huge firm gives staff £2,500 Christmas bonus as well as a 10% pay rise amid surging costs
Workers at JCB will have been given an early Christmas gift as bosses gave them a £2,500 Christmas bonus and 10 per cent pay rise to help with cost of living struggles this winter.
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Staff at JCB are celebrating a double boost before Christmas with a huge bonus and pay rise. Shop floor workers at the digger giant will receive a one-off lump sum cash payment of £2,500 in time for the festive period. In a new pay deal, they will also get a 10 percent pay rise for next year, reports Stoke on Trent Live. The announcement comes as much welcomed news to the workers amid the cost of living crisis.
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The company are hoping it will be a point of reference for others, with trade unions across the country striking for better pay and working conditions.
The 10 percent pay rise comes after negotiations between management at JCB and officials from the GMB union representing the shop floor workers.
GMB Organiser Stuart Harrison said: "This is great news for our members, both JCB employed workers and the agency members employed by Global Guidant.
"In the middle of a cost of living crisis, this pay boost will make a huge difference.
"We also welcome the news that JCB has committed to a huge job creation programme which will see 500 new jobs created for local people.
"GMB representatives and members have faced tough negotiations but their campaign has delivered a substantial rise and a big win for our members."
JCB's sales turnover grew almost 35 percent in one year, up from £3.1 billion in 2020 to £4.4 billion in 2021.
Profit before tax increased from £130.1 million to £501.6 million, while machine sales rose from 74,590 to 95,650.
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The pay rise applies to union members working on the factory floor at sites in Cheadle, Uttoxeter and the firm's Rocester headquarters in Staffordshire.
Shop floor employees will also be entitled to the rise among the company's 8,000 strong workforce at other UK plants.
And all staff working for the company will receive the £2,500 payment in time for Christmas which will be phased in for agency staff during next year.
The company is also giving permanent contracts to 500 of its agency workers on the shop floor.
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Both sales turnover and machine sales in 2021 were above their pre-pandemic levels at JCB.
The group also maintained a strong balance sheet with no net borrowings throughout 2021.
CEO Graeme Macdonald said: "I am pleased that agreement has been reached on a new pay deal before the end of the year. I’m delighted that we will be able to make a lump sum cash payment of £2,500 to employees in time for Christmas in recognition of their ongoing commitment to JCB.
"Negotiations with the GMB Union were tough at times, but this needs to be viewed in the context of the difficult economic environment, that is proving challenging for both employees and the company. This new pay deal is a fair outcome and it allows our UK operations to remain broadly competitive on the global stage."
