Rolls-Royce offers cash to workers facing high cost of living
Rolls-Royce said it was the first bonus to be offered as a result of the economic climate and not performance results
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 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 back dated to March to 11,000 UK shopfloor workers.
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Rolls Royce Trent XWB engines, designed specifically for the Airbus A350 family of aircraft, are seen on the assembly line at the Rolls Royce factory in Derby, November 30, 2016. (REUTERS/Paul Ellis/Pool) ((REUTERS/Paul Ellis/Pool) / Reuters Photos)
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.
Logo of Rolls Royce car is pictured outdoors in Krakow, Poland in October 2020. (Beata Zawrzel/NurPhoto via Getty Images / Getty Images)
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.
Britain's Prime Minister Boris Johnson leaves after the Commonwealth Service on Commonwealth Day at Westminster Abbey in London, Monday March 14, 2022. (Yui Mok/PA via AP / AP Newsroom)
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The move comes days after British Prime Minister Boris Johnson warned that a sharp hike in wages would risk fuelling further price rises, adding that increasing pay to match inflation risked a wage-price spiral.