Jaguar Land Rover has announced it is scrapping plans to close one of its UK factories after reaching a "landmark pay and conditions settlement" with its workforce's trade unions.
The agreement sees the company keeping both of its plants in Castle Bromwich and Solihull open, putting an end to plans announced last September that would have seen one of the two sites closed by 2014.
Union bosses have agreed to a pay deal that means both sites can stay open, alongside the third UK JLR plant at Halewood. The terms include a pay rise of five percent for employees in November of this year, with a further rise of at least three percent next November. New employees in the manufacturing plants, of which JLR has announced plans to bring in an extra 2,000, will come in on lower rates of pay.
The workers have yet to agree to the deal, but they are expected to do so. Jaguar has given assurances that there will be further investment in the company, which will lead to "thousands of new jobs in Britain over the next decade."
The company intends to invest "billions of pounds in the UK and significantly increase both the number of models in its range as well as overall global volumes."