Luxury carmaker Aston Martin has decided to increase wages for more than 2,500 employees and subcontractors at its UK sites from 2024. The initiative is aimed at improving productivity and worker well-being. The agreement, reached after negotiations with the unions, also includes bonuses and a reduction in working hours.
British luxury carmaker Aston Martin announced on Monday June 10 a significant pay rise for over 2,500 of its employees and subcontractors across its UK production sites and offices. The measure is designed to boost productivity while supporting employee well-being.
Starting in 2024, all eligible Aston Martin employees will benefit from a 4% annual salary increase for the years 2024 and 2025. In addition, manufacturing technicians will receive a further 1.5% increase in 2025, as well as a one-hour reduction in their working week.
“Achieved through our positive working relationship with our union colleagues, this new agreement recognizes our commitment to putting people at the heart of our organization and making Aston Martin a great place to work. It builds on the ongoing support we have given our colleagues in the face of the high cost of living and the influenza A (COVID-19) pandemic,” said Simon Smith, Aston Martin’s Director of Human Resources.
Negotiations with the unions
In response to the persistently high cost of living, Aston Martin has also decided to grant all eligible employees an additional bonus of £1,000 ($1,271.60). This initiative continues the company’s commitment to supporting its employees in the face of current economic challenges.
“After lengthy negotiations between Unite the Union and Aston Martin Lagonda, Unite members voted by a large majority to accept the two-year pay deal,” said a spokesperson for Unite the Union, the largest trade union in the UK and Ireland. “Unite believes that this agreement enhances the working relationship established with AML, while offering a substantial pay rise and improving the work-life balance of our members, thereby promoting their well-being.”
“Aston Martin has reached a new long-term agreement, increasing salaries for its valued employees while committing to reducing contractual hours for manufacturing technicians in 2025 to promote a positive work-life balance,” for its part, the automaker says in a statement.
Retaining talent
The agreement comes as Aston Martin prepares to ramp up production of new models later this year, after ceasing production of older models. As well as rewarding its skilled and dedicated employees, Aston Martin aims to retain the talent essential to achieving its financial targets in 2024 and beyond.
“In addition to rewarding our skilled and dedicated employees, this agreement also promotes talent retention, providing workforce certainty for the company as we enter an important period of production, with the increase in new models that will support the company’s financial objectives in 2024 and beyond,” Aston Martin said.
The salary increase is also aligned with the Retail Price Index in January 2023, ensuring that employee salaries remain competitive and reflect current economic conditions.
Aston Martin’s wage agreement with Unite the Union marks an important milestone for the company and its employees. It demonstrates Aston Martin’s commitment to supporting its employees in the face of economic challenges and to promoting a balanced and productive working environment.
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Featured photo : © Aston Martin
