Home Business amount Rolls Royce offers cash for workers facing high cost of living

Rolls Royce offers cash for workers facing high cost of living

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British aero-engine maker Rolls-Royce Holdings said it was offering a cash lump sum of 2,000 pounds ($2,458) to around 70% of its British workforce to help them cope at high living costs. The UK economy initially rebounded strongly from the COVID-19 pandemic but is now struggling with a high cost of living made worse by a combination of labor shortages, supply chain disruptions , post-Brexit trade issues and the war in Ukraine.

The British aero-engine group said it would pay the lump sum in cash to 11,000 workers as well as 3,000 junior managers. In an emailed statement to Reuters, a Rolls-Royce spokesman said the company was also offering a 4% pay rise as of March to 11,000 British workers.

The company added that this was the first time it had offered a “bonus” tied to economic sentiment and not performance. Household energy bills in Britain are set to rise another 40% in October, the sector regulator warned last month.

Rolls-Royce added that 3,000 workers would receive the money in August, while the remaining 11,000 would receive the amount when the deal is approved by the union. The move comes days after British Prime Minister Boris Johnson warned that a sharp rise in wages could fuel further price hikes, adding that raising wages to match inflation risked spiraling wages-prices.

($1 = 0.8137 pounds)

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