Aston Martin, the renowned British luxury car manufacturer, has announced a significant pay rise for thousands of its new and older workers across the UK. This comes as part of a new, long-term agreement reached following discussions with union representatives. The pay increase will affect over 2,500 employees and contractors at the company’s manufacturing sites and offices, marking a pivotal moment for the workforce in 2024 and 2025.
In response to the prolonged high cost of living, Aston Martin has agreed to a 4% salary increment for all eligible workers. Additionally, a one-time bonus of £1,000 will be disbursed to help mitigate the financial strain on its UK workforce. Manufacturing technicians can expect a further 1.5% pay rise in 2025, coupled with a one-hour reduction in their weekly working hours.
The spokesperson for the union involved in the negotiations, stated, “Following lengthy negotiations between our members and Aston Martin Lagonda, our members have voted in a large majority to accept the two-year pay deal.” This statement underscores the collective efforts and mutual agreement reached after extensive discussions.
Simon Smith, Chief People Officer at Aston Martin, emphasized the company’s dedication to its workforce. “Achieved through our positive working relationship with union colleagues, this new agreement recognises our commitment to putting people at the very heart of our organisation and making Aston Martin a great place to work,” he remarked. Smith highlighted the agreement’s role in supporting employees through the ongoing economic difficulties and the COVID-19 pandemic.
The pay deal arrives during a significant reorganization within Aston Martin. The company is adjusting its production strategy by phasing out certain models while preparing to launch new ones, aimed at revitalizing its business and financial standing in upcoming years. Despite these strategic shifts, Aston Martin reported a larger-than-expected loss last month, with a 63% decrease in sales of its profitable DBX SUV model. For the first quarter ending March 31, the company recorded an adjusted pre-tax loss of £111 million, a steep decline from a £57 million loss the previous year.
However, the average selling price for Aston Martin’s vehicles rose to £253,000 from £213,000, buoyed by deliveries of high-value models like the £3.5 million Aston Martin Valkyrie Spider and the classic £1.5 million Valour supercar.
The Workers Union Says…
“This pay raise reflects Aston Martin’s proactive approach to workforce management and its strategy to enhance employee satisfaction and retain talent. This move is not only a significant step towards stabilizing the workforce but also a strategic investment in the company’s future as it gears up for new production phases that will bolster its financial objectives from 2024 onwards.”
