Rolls-Royce offers cash to workers facing high cost of living
British aircraft engine maker Rolls-Royce Holdings said it was offering a cash lump sum of 2,000 pounds ($2,458) to about 70% of its UK workforce to help them navigate high living costs.
Britain’s economy initially rebounded strongly from the COVID-19 pandemic but is now battling high living costs worsened by a combination of labor 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 back dated to March to 11,000 UK shopfloor workers.
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The company added it was the first time it was offering a ‘bonus’ that was linked to the economic climate and not performance.
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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.
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The move comes days after British Prime Minister Boris Johnson warned that a sharp hike in wages would risk fueling further price rises, adding that increasing pay to match inflation risked a wage-price spiral.