Aston Martin has announced plans to raise pay for over 2,500 of its UK employees and contractors by four per cent over the next two years, following “constructive” talks with unions.
The Gaydon-based luxury carmaker said on Monday it had completed a new long-term agreement, which also commits to reducing contractual hours and promoting a “positive work-life balance.”
Workers in its general staff population will recieve the four per cent bump in 2024 and 2024, which is in line with the Retail Price Index, a measure of inflation.
In addition , Manufacturing technicians will receive an extra 1.5 per cent rise in 2025 alongside a reduction in working time of one hour per week.
All eligible employees will receive a one-off payment of £1,000 to recognise the continued “high cost of living,” Aston Martin said.
Simon Smith, Chief People Officer of Aston Martin, said: “Achieved through our positive working relationship with trade union colleagues, this new agreement recognises our commitment to putting people at the very heart of our organisation and making Aston Martin a great place to work.
“It builds on our continued support for colleagues with the high cost of living and throughout the COVID-19 pandemic.
“In addition to rewarding our skilled and dedicated employees, this agreement also promotes talent retention, providing labour certainty for the business as we enter an important period of production, with the ramp up of new models that will support the company’s financial goals in 2024 and beyond.”
A spokesperson for Unite the Union added: “Following lengthy negotiations between Unite the Union and Aston Martin Lagonda, Unite members have voted in large majority to accept the two year pay deal.
Unite believes that this deal promotes the working relations built with AML, along with delivering a substantial pay rise and improvements on the work life balance of our members, promoting wellbeing.”
Alongside other British luxury carmakers such as McLaren and Bentley, Aston Martin has been hit by strikes across its supply chain from members of Unite in recent years.
Pay disputes were compounded by a Covid-era slump in luxury car sales, although tensions have eased after the market rebounded significantly in 2023 and 2024.
In 2020, Aston Martin faced backlash for proposing 500 job cuts at its primary facility in Gaydon, Warwickshire, which employed around 1,600 people at the time.