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Land Rover reaches pay-deal agreement with unions

Land Rover management and trade union representatives have reached agreement on a two-year pay deal for the workforce, based mainly at the company's Solihull site.

The deal includes a 4.25% basic pay increase increase for the first year, effective from November 1, 2001, with a further 3.5% in the second year; the introduction of a new employee development programme, under which the company will provide funding for personal training courses not connected to the workplace; continuation of the reduced working week, within which employees work a 37 hour week and accumulate one hour each week as additional time off and an extra day's holiday for those with 15 years service, rising to a further day for 20 years service, together with an increased annual holiday bonus which rises from £265 to £275 in the first year and £285 in the second year.

"The new agreement comes as a result of the substantive improvements to productivity and quality already achieved by the team at Solihull," said manufacturing director Marin Burela. "We wanted to reward employees for their commitment, but at the same time, we need to recognise the uncertainty of the economic climate, coupled with the intense competition in the luxury segment.”

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