Bermuda Post

Thursday, Mar 28, 2024

Rolls-Royce hands workers £2,000 to ease cost of living squeeze

Rolls-Royce hands workers £2,000 to ease cost of living squeeze

The Derby-based engineering group told 11,000 staff on Monday that they would receive the lump sum as well as a backdated 4% pay rise as the cost-of-living crisis intensifies.

Rolls-Royce Holdings is to hand £2,000 in cash to nearly three-quarters of its UK workforce, making it the latest major British employer to try to help staff deal with the intensifying squeeze on living costs.

Sky News has learnt that the aircraft engineering group informed thousands of employees on Monday that it is offering the lump sum as well as a 4% pay rise backdated to March to 11,000 shopfloor workers in its UK manufacturing plants.

It also intends to provide the £2,000 lump sum to a further 3,000 junior managers, taking the total number of beneficiaries of the company's decision to 14,000 people.

In total, 20,000 people work for the engine-maker in Britain.

A source who had seen the memo circulated to staff said that junior managers would receive the cash in August, while union members will receive it once the offer is accepted by Unite, which represents thousands of Rolls-Royce workers.

Staff at Derby and Bristol would account for the bulk of the recipients of the additional money, which collectively would equate to a 9% pay rise for the 11,000 shopfloor workers, according to one insider.

The company has 20,000 staff in Britain


The one-off lump sum will cost Rolls-Royce £28m, while the backdated pay rise will take the aggregate cost to more than £40m, the source added.

The person described the pay rise as the biggest at the company for well over a decade.

The sum is not insignificant for a business which City analysts predict will barely break even from a cashflow perspective this year.

Warren East, Rolls-Royce's outgoing chief executive, is said to have decided, however, that the move was essential to maintain morale among a workforce that has endured a turbulent couple of years.

He was said to have told workers in the memo: "We are living through exceptional times, with economic uncertainty largely driven by the continuing impact of the global pandemic and more recently the war in Ukraine.

"All of this is impacting each of us at home, at work and in our pockets."

The pandemic spurred Rolls-Royce into announcing thousands of jobs cuts as the global aviation industry ground to a near-halt.

It was also forced to raise hundreds of millions of pounds from the sale of new shares, as well as refinancing its debts.

Rolls-Royce follows Lloyds Banking Group, the UK's biggest high street lender, in awarding employees additional pay to help them cope with soaring household expenditure.

A number of supermarkets, including Asda and Morrisons, have also handed pay increases to workers in recent weeks.

A Rolls-Royce spokesman declined to comment.

Newsletter

Related Articles

Bermuda Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
'I just lost it' Lowe’s worker fired after 13 years of employment for confronting thieves trying to steal $2K of merchandise
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
×