A pay offer from Rolls-Royce Holdings PLC (LSE:RR.) has been rejected by its main trade union, which represents around 11,000 workers.
The engine maker yesterday said it was offering a 4% pay rise for its 11,000 shop floor workers, backdated to March, plus a £2,000 one-off cash payment that would be offered to shop floor workers and around 3,000 junior managers.
A spokesman for the FTSE 100-listed company said that the combination of the cash lump sum and pay rise for shop-floor staff represented a pay increase of about 9%.
It was estimated that the one-off lump sum would cost Rolls-Royce £28mln, with the pay offer taking the total to £40mln.
A spokesperson for the Unite union said: “Following the overwhelming rejection of Rolls Royce's previous offer, the revised offer still falls a long way short of the cost of living crisis claim submitted by our members and their expectations.
“Unite senior reps are in discussions to decide next steps."
This comes alongside a strike this week by train workers and potential strikes by Royal Mail and BT Group staff.