About 70% of the UK employees will get 2,000 pounds($2,458) from British aviation engine manufacturer Rolls-Royce Holdings. To help them with high living expenses.
Britain’s economy initially rebounded strongly from the COVID-19 pandemic but is now battling high living costs worsened by a combination of labour shortages, supply chain disruptions, post-Brexit trade problems and war in Ukraine.
The UK aero-engine group said that it would give the cash lump sum to 11,000 shop-floor workers. As well as 3,000 junior managers.
In an emailed statement to Reuters, a Rolls-Royce spokesperson said the company was also offering a 4% pay rise.
The company added it was the first time it was offering a ‘bonus’ that was link to the economic climate and not performance.
Household energy bills in Britain look set to surge by another 40% in October, the industry regulator warned last month.
Rolls-Royce added that 3,000 workers would receive the cash in August. While the other 11,000 would get the amount when the deal was approved by the union.
This happens after British Prime Minister Boris Johnson warned that a hike in wages would risk fuelling further price rises. Adding that increasing pay to match inflation risked a wage-price spiral.
-Reuters.
