New offer at Rolls-Royce

It is hoped the new offer will end strike threats

Workers at Rolls-Royce are to vote on a new offer aimed at ending a threatened strike over pensions.

The aero-engine giant has offered to increase its contributions to its struggling pension fund by £35m a year.

Rolls-Royce admitted its fund had a £1bn deficit earlier this year.

The firm, which has sites in Derby, Bristol, Sheffield, Sunderland and Glasgow, proposed to scrap its final salary scheme for employees and base their payout post-retirement on a career average salary.

The Amicus union responded by threatening to hold a ballot on industrial action unless the terms were changed.

But in a statement to the stock exchange on Wednesday, Rolls-Royce said the union's negotiating committee was now recommending its members accept the new terms.

Amicus said the proposal was "vastly improved" and members were expected to vote on it in 15 days.