Page last updated at 14:57 GMT, Wednesday, 1 July 2009 15:57 UK

Jaguar Land Rover pay delay plea

Jaguar Land Rover
Jaguar Land Rover has warned it may have to cut jobs

Workers at Jaguar Land Rover have been asked to have their salaries delayed to help the firm's cashflow.

The carmaker wants to push payments from the usual pay day on the fifteenth of the month, to the end of the month, the Works Management publication said.

Staff who accepted the revised salary date will get a one-off £200 payment.

Last week the firm's owner, Tata Motors warned it may have to cut more jobs after the carmaker reported a £280m 10-month loss.

A Jaguar Land Rover spokesman said that the organisation needed to "realign its pay structure".

Works Management, a manufacturing sector publication, reported that the firm had recently negotiated extended payment terms with its suppliers - moving them from 45-day to 60-day terms.

However the 15-day extension means that supplier payments clash with salaries - prompting the change.

Jaguar Land Rover currently employs 14,500 people, having made 450 redundancies at the start of the year.

Sales of Jaguar and Land Rover cars fell 32% in the 10 months to 31 March.

The number of vehicles sold fell to 167,000 from 246,000 a year earlier, as worldwide demand fell sharply due to the recession.

Tata bought Jaguar Land Rover for £1.7bn in June 2008 from Ford.

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