GlaxoSmithKline PLC (LSE:GSK) has averted strikes at its UK manufacturing plants with a salary increase that trade unions have accepted.
Trade union Unite said a 10.5% pay offer has been accepted, though GSK said the offer was a backdated 4.5% increase to base salary, as well as a one-off special award to all GSK employees of one week’s pay.
The FTSE 100 company had previously offered a 2.75% pay increase, which the union called "derisory".
Industrial action had been planned for the first time in the pharmaceutical group’s history as it was pointed out that the pay increase was a cut in real terms given UK consumer price inflation stood at almost 7% at the time, and had since risen to 9%.
What's more, GSK generated £34bn in revenue and £8.8bn operating profits last year, with chief executive Emma Walmsley's pay increase 17% to £8.2mln.
“By voting for strike action, standing together, with their union firmly on their side, our members and reps have secured a greatly improved pay increase at GSK,” said Unite’s general secretary Sharon Graham.
“This is further proof that Unite’s commitment to prioritising jobs, pay and conditions is delivering significant benefits for members.”
The new pay agreement applies only to roles covered by collective bargaining agreements, applying to around 1,350 workers, according to the company.