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Thousands of workers at the manufacturing firm JCB have voted to accept a pay cut of £50 a week to prevent the loss of 350 jobs, it was announced today.
The GMB union said around 2,500 of its members at seven JCB plants in England and Wales had agreed to work a four-day week for the next 13 weeks to help the company weather the economic downturn.
Despite recording pre-tax profits of £187m last year, the company has been badly hit by the downturn in property and construction. In July this year, it warned of a "rapid decline" in demand.
The union said the move - believed to be the first of its kind in the current economic slump - showed the recession was getting worse and called on the government to instigate a major public works programme to ease its impact.
"I am delighted that we have been able to save 350 jobs," said GMB officer Keith Hodgkinson. "The short time is part of a worsening recession and these GMB members expect the government and the Bank of England to take the necessary steps to begin large-scale public works to at least slow the recession down and prevent it getting too deep."
The union said the pay the workers will lose will partly be made up by money from a government fund. Factories affected by the decision include Wrexham in North Wales and sites in Cheshire and Staffordshire.
JCB, which employs more than 8,000 people, operates in more than 150 countries and is the world's third largest manufacturer of construction equipment. The 62-year-old company has 10 plants in the UK.
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