GMB: The 3% pay increase at JCB takes a somewhat small step towards making up losses during recession

15 April 2010

GMB members in this vital export industry will be looking to make up the ground they lost during the recession both in terms of jobs and incomes says union convener.

GMB today commented on the new pay deal agreed by members employed by JCB at 11 sites.

The sites are at Rocester, Wrexham, Cheadle, Uttoxeter, Rugeley and Foston Derbyshire. The deal covers 1,900 workers. It provides for a 3% pay rise on 1st July 2010and a pay rise based on the RPI increase in the November on 1st Jan 2011, 1st 2012 and 1st Jan 2013. It was accepted in a ballot vote by 54% to 46%.

Short time working of 34 hours began at JCB in November 2008 and lasted until May 2009 when hours reverted to 39. However in September 2009 workers took one week off as unpaid leave. In total 1,800 jobs were lost in the recession, the latest being almost 400 in December 2009. Overtime working has now resumed and the company is taking on 200 new agency workers to meet restocking demand as new machines come on stream and there is increased demand for machines from China and Brazil.

Gordon Richardson GMB Convener at JCB Rocester site said "I will be reporting on the current economic position and the new pay deal to GMB Congress delegates in June in Southport.

In terms of workload we are still facing uncertainties and the 200 new jobs are only a start in reversing the 1,800 job losses we suffered in this banker's recession. There is no getting away from the fact that GMB members in this vital export industry will be looking to make up the ground they lost during the recession both in terms of jobs and incomes.

The 3% pay increase in July, albeit six months late, takes a somewhat small step towards making up this deficit.

With millions of workers in the UK facing a pay freeze this year delegates are likely to consider that members at JCB made the right decision when they voted by a narrow margin to accept the best deal we could get. We have some hard bargaining ahead during the deal to level up pay in some plants."