LEVC offers improved workers pay deal in attempt to stave off strike fears

In a tense standoff with Unite the Union, the London Electric Vehicle Company (LEVC) has tabled an increased pay offer to its workforce in Coventry, attempting to stave off the threat of industrial action.

LEVC expressed disappointment over the decision of Unite members to vote for strike action following recent pay negotiations. A company spokesperson highlighted the external economic challenges and financial pressures that have influenced the offer.

The proposed pay increase now stands at a 6.6 percent rise for 2024. Despite the contentious backdrop, LEVC remains committed to reaching a resolution that satisfies both the workforce and the company’s operational needs.

LEVC has emphasised that contingency measures are in place to mitigate any potential disruptions to their production schedule should the strike proceed. This assurance aims to minimise impact on customers amidst the ongoing dispute.

The crux of the issue revolves around the rejection of a previous offer that included a 3.5 percent pay rise and a £400 one-off payment for lower-grade employees. Union representatives criticised this offer as a real terms pay cut, citing the Retail Price Index (RPI) inflation rate of 4.9 percent in January as a key benchmark. They argue that successive below-inflation pay rises have eroded wages at LEVC by nearly 20 per cent since 2016.

As around 100 workers at the Coventry plant weigh their options, the unfolding scenario highlights the broader tensions between rising living costs and wage stagnation.

An LEVC spokesperson said: “We are disappointed that Unite members have voted in favour of industrial action following pay negotiations with LEVC. Against the context of external challenges and significant financial pressures, LEVC has made a competitive updated offer, amounting to an equivalent total 6.6 per cent pay rise in 2024 for our operators.

“We are committed to reaching a satisfactory solution for both parties. Should industrial action take place we have put in several measures to ensure that the impact, if any, upon our production schedule and ultimately our customers, will be minimal.”