Rolls-Royce employees will get a £2,000 one-time payment to cope with the growing cost of living in the UK.
The payment will be made to junior management and shop floor employees, who will be situated mostly in Derby and Bristol, according to the engineering firm.
The lump amount will be distributed to 3,000 employees starting in August.
After their union accepts the amount, the remaining 11,000 unionized workers will receive the cash.
As energy prices continue to rise and UK inflation reaches a 40-year high, Lloyds Bank announced measures to help employees cope with growing costs earlier this month.
According to the BBC, 70 percent of Rolls Royce’s UK workforce will receive the payment, and the company is also “giving our shop floor staff the greatest yearly salary boost in at least a decade.”
According to the spokeswoman, talks with unions about a wage settlement for 2022-2023 are ongoing, and the cost of living issue would be a factor in those talks.
The 11,000 unionized members will also be awarded a 4% wage boost retroactive to March, according to the spokeswoman.
Pay rates and benefits for UK workers have risen as firms attempt to hire and keep workers after official numbers revealed that there were fewer unemployed persons than job openings for the first time in history.
After Unite the Union marched outside Lloyds Bank’s annual general meeting last month, employees were handed a £1,000 lump sum to help with mounting costs.
Inflation, or the rate at which prices grow, is currently at 9%, with another increase forecast later this year.
The global coronavirus pandemic wreaked havoc for Rolls Royce, causing demand for its aircraft engines to plummet as international air traffic came to a halt.
It revealed plans to lose 9,000 positions globally by the end of this year in 2020, with 3,000 of those jobs going to the UK. It was estimated at the time that the industry would take “many years” to recover from the pandemic.