The economy battled inflation and has aggravated by the labor crisis, supply chain disruptions, post-Brexit, and Ukraine crisis after an initial rebound from the pandemic.
Rolls Royce looked to offer the sum to 11,000 shopfloor workers and 3,000 junior managers mainly based at its Derby and Bristol sites, BBC reports.
Rolls-Royce also offered a 4% pay hike dated to March to 11,000 U.K. shopfloor workers.
Three thousand workers would receive the cash in August. The other 11,000 would get the sum when the union approved the deal.
Last May, regulators had warned against another 40% increase in household energy bills in Britain in October.
Rolls-Royce returned to profit in 2021 post-pandemic after cutting 9,000 jobs. It earned $152.20 million profit in 2021 and looked to be “modestly” cash positive for the year ahead.
The proposed 4% salary hike and bonus will cost Rolls-Royce ~$55 million in 2022.
Recently, British Prime Minister Boris Johnson warned against a sharp wage hike fueling further inflation.
U.K. gas prices rose 53.5%, and electricity prices were up 95.5% in April versus a year earlier, Fortune reports.
High oil prices also triggered consumer prices while the average British salary dropped 1.2%.
Companies worldwide have started trimming their workforce and scaling down to reduce their capital expenditure amid the global macro uncertainties.
Price Action: RYCEY shares closed at $1.12 on Friday.
Photo via Wikimedia Commons
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