Peugeot's UK Vauxhall car workers agree pay deal as dispute in Germany continues

[LONDON] Workers at Peugeot-maker PSA's Vauxhall car plant in Britain have agreed a pay deal with the French automaker, the Unite Union said on Thursday, as a dispute with the firm's Opel workers in Germany continues.

At Britain's Ellesmere Port Vauxhall factory, workers voted in favour of a deal which will give them a lump sump of £750 (S$1,387) and a 1.5 percent pay rise in January 2019, mirroring a deal agreed at the firm's southern English van site.

"Our continued focus is to secure investment from PSA in new models at Ellesmere Port and guarantee the plant's long-term future," said Len McCluskey, General Secretary of Unite, Britain's biggest trade union.

The deal will also see the amount of hours banked by workers reduced as PSA, which last year acquired Opel and its sister brand Vauxhall, tries to restructure the company and return it to profitability.

In Germany, Opel workers have protested against PSA's plans to rein in wages in return for new production investments including a company demand that 19,000 German workers give up a 4.3 per cent pay rise.

REUTERS