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Rolls Royce offers cash to workers facing high cost of living
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(Reuters) – British aircraft engine maker Rolls-Royce Holdings said it was offering a cash lump sum of 2,000 pounds ($2,458) to about 70% of its UK workforce to help them navigate high living costs.
(Reuters) – British aircraft engine maker Rolls-Royce Holdings said it was offering a cash lump sum of 2,000 pounds ($2,458) to about 70% of its UK workforce to help them navigate high living costs.
Britain’s economy initially rebounded strongly from the COVID-19 pandemic but is now battling high living costs worsened by a combination of labour shortages, supply chain disruptions, post-Brexit trade problems and war in Ukraine.
The UK aero-engine group said that it would give the cash lump sum to 11,000 shop-floor workers as well as 3,000 junior managers.
In an emailed statement to Reuters, a Rolls-Royce spokesperson said the company was also offering a 4% pay rise back dated to March to 11,000 UK shopfloor workers.
The company added it was the first time it was offering a ‘bonus’ that was linked to the economic climate and not performance.
Household energy bills in Britain look set to surge by another 40% in October, the industry regulator warned last month.
Rolls-Royce added that 3,000 workers would receive the cash in August, while the other 11,000 would get the amount when the deal was approved by the union.
The move comes days after British Prime Minister Boris Johnson warned that a sharp hike in wages would risk fuelling further price rises, adding that increasing pay to match inflation risked a wage-price spiral.
($1 = 0.8137 pounds)
(Reporting by Amna Karimi in Bengaluru; editing by Jason Neely)
A cash lump sum is a single payment of money made all at once, rather than in installments. It is often used as a bonus or financial assistance to help individuals manage expenses.
A pay rise is an increase in an employee's salary or wages, often given to reward performance, adjust for inflation, or improve employee satisfaction.
Living costs refer to the expenses associated with maintaining a certain standard of living, including housing, food, transportation, and utilities.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI).
A wage-price spiral is an economic phenomenon where rising wages lead to increased costs for businesses, which then pass those costs onto consumers in the form of higher prices, leading to further wage demands.
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