Pay deal deadlock at Jaguar

THE GUARDIAN

Jaguar's troubles mounted yesterday when its 8,500 workers rejected a revised pay package negotiated over the past few days by their union leaders, writes Keith Harper. At mass meetings in Birmingham and Coventry, the workers rejected a £7 a week offer for this year and £7.50 for next year which the company said would have cost just over 4 per cent.

The new element in the package is a "profit improvement guarantee" which would give staff a lump sum payment of £60 in 1990 if the company's profits were more than £25 million in the first half of the year. If the profits were maintained, then staff would receive extra increases up to £5 a week.