PTI reported that Jaguar Land Rover employees have agreed to a 1 year pay freeze and a 4 day week to save their jobs currently threatened by falling sales and economic downturn.

The JLR workers accepted the cost saving measures in a ballot conducted by unions GMB and Unite involving 15,000 workers. 70% of the union members accepted the measures that will save JLR GBP 70 million a year.

A joint statement by Unite and the GMB said that "Our members in JLR deserve better much better. The management agreed with our view that, when this unprecedented recession ends, the retention of a skilled and loyal workforce is an integral part to the ongoing success of this business."

Under the agreement, which goes into immediate effect, pay will be frozen until 2010 and there will be a 4 day work week at the plants and the cancellation of bonuses for about 2,400 salaried employees.

Mr David Smith CEO of Jaguar Land Rover said that he was pleased that the company and the unions had been able to work together on such sensitive issues. Mr Smith said that "It also confirms our determination as a team to steer Jaguar Land Rover through these extraordinary and challenging times, so that our business is ready to take advantage when the downturn finally ends."

The company offered the deal in February and promised no compulsory job losses for 2 years. Jaguar Land Rover, which was bought by TATA Motors Ltd in June 2007 from Ford Motor Co for USD 2.3 billion, has already laid off 450 people this year.

(Sourced from Press Trust of India)