Tuesday, the labor organization Unite rejected Rolls-Royce (OTC: RYCEYlatest )’s compensation offer, which included a 2,000 pound ($2,455) cash lump payment for the majority of the aviation engine manufacturer’s British staff, stating that it did not meet expectations.
The British corporation said earlier in the day that it will provide the lump amount to about 70 percent of its UK staff to assist them with growing living expenses.
“The amended offer falls well short of our members’ cost of living crisis claim and their expectations. Senior Unite representatives are discussing future actions “a Unite union official stated via email.
Britain’s economy originally recovered successfully from the COVID-19 epidemic, but is now struggling with high living expenses exacerbated by labor shortages, supply-chain concerns, post-Brexit trade issues, and the conflict in Ukraine.
The British aero-engine firm said it will distribute the lump payment to 11,000 shop-floor employees and 3,000 junior managers.
In an email to Reuters, a representative for Rolls-Royce said that the business was also providing 11,000 UK shopfloor employees a 4 percent boost retroactive to March.
The corporation noted that this was the first time it had offered a “bonus” that was not tied to performance but rather the economic conditions.
Rolls-Royce said that 3,000 employees will get the cash in August, while the remaining 11,000 would receive the sum upon union approval of the agreement.
The action comes days after British Prime Minister Boris Johnson cautioned that a significant increase in wages might lead to more price increases, saying that boosting pay to meet inflation posed the danger of a wage-price spiral.
The closing price for shares of the London-listed business was 90.83 pence, down 0.7%.