British Auto Maker and Unions Sign Deal

NEW YORK TIMES

Rover Group Ltd., the British auto maker owned by BMW of Germany, said today that it had reached agreement on a three-year pay package after almost a week of talks with its joint trade unions.

The agreement includes a pay increase of 3.5 percent in its first year beginning Nov. 1. In each of the next two years, the pay increase will be equal either to Britain's retail price index plus half a percentage point or to 3.5 percent, whichever is higher.

Rover said workers with at least 12 months' service would receive a further 1 percent increase, payable from Nov. 1.

''This is a fair and reasonable deal that both rewards employees and gives the company stability for the future,'' the company said.

Rover said union members would vote on the accord later this month.