JCB shopfloor employees have voted to accept a three per cent pay increase from the company as part of an historic wage deal which covers the next three and a half years.

Agreement on the pay proposal was reached following a vote on Monday by GMB members and will see shopfloor employees receiving a three per cent pay increase on July 1 this year.

They also voted to accept a proposal for subsequent pay reviews to take place on January 1st 2011, 2012 and 2013 and for them to be linked to the previous November’s rate of inflation.

Chief Executive Officer Alan Blake said: “We are pleased to return to the position of being able to offer pay rises to our workforce after a sustained period of uncertainty in world markets and are delighted that GMB members have voted in favour of the JCB pay proposal. This is the longest pay deal ever to be agreed at JCB and demonstrates a responsible approach by everyone concerned.”

The pay deal was agreed as JCB begins re-introducing overtime for shopfloor employees and has started a recruitment process for up to an additional 200 shopfloor positions as world markets begin showing the first tentative signs of improvement.

CEO Alan Blake added: “There has been a slight improvement in some markets which has led to some increased demand for JCB’s products and while we can’t say at the moment if this situation will be sustained, we are pleased to be offering overtime and recruiting again.”

GMB Works Convenor Gordon Richardson said: “GMB members across the Group have been through a torrid time over the past two years and it’s welcome news that the union has negotiated a pay rise with the company. It is also pleasant to see some of our former employees back working for the company as part of an on-going recruitment process.”