A Christmas truce in a bitter pay row is on the cards at Jaguar Land Rover – after the company tabled a new two-year offer.
Fears that industrial action could bring production to its knees receded after the vehicle maker revealed a revised deal was to go to a ballot with a recommendation for acceptance from Unite union.
A joint statement from Unite and JLR said: "Jaguar Land Rover and Unite have concluded detailed pay and conditions negotiations, a revised offer has been made by the company that will be unanimously recommended by Unite to its members.
"This pay offer includes recognition of Jaguar Land Rover's recent performance for employees and agreements on working practices with Unite that ensure that the company can meet its business plan commitments.
"The headlines of the offer are a 4.5 per cent pay increase with a lump sum performance recognition payment of £825 per employee in year one of a two year deal, RPI + 0.5 per cent or three per cent, whichever is greater in the second year.
"We will now communicate the detail of this offer to employees. There are no pensions proposals in this pay deal."
It is understood that the revised deal was tabled following talks between unions and management last Thursday and Friday and a briefing with shop stewards yesterday.
A unanimous recommendation to accept the offer was agreed by the Joint Negotiating Committee and a ballot of around 15,000 workers will be held, with the aim of concluding a deal before Christmas.
A three-year pay deal worth 14 per cent had been overwhelmingly rejected in a previous ballot, with 12,881 members voting against, just 454 voting to accept and 17 spoilt ballot papers.