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Leyland Daf wins two-year pay deal
Page 14
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• Leyland Daf has just secured its second successive two-year pay deal, giving the 2,000-plus hourly-paid employees at Leyland and Chorley in Lancashire a 6% increase this year and a 5.5% increase next year. A profit-related bonus scheme could also add 2% to their wage packets this year and 2.5% maximum next year, if targets are achieved.
John Gilchrist, Leyland Daf managing director of manufacturing, says that the two-year pay settlement will be an important plank in the company's financial forward-planning and will help maintain stability within the operation.
The truck manufacturer opened its new Daf International headquarters in Salford this week to co-ordinate sales and marketing for the company all over the world outside Continental Europe. It has backdated the deal to 4 September and has agreed new competi tive working practices on the factory floor.
Daf vice-chairman Cor Baan opened the newly-built offices announcing that the company is looking for major growth from the Far East — Hong Kong and 'Thailand in particular — in the next decade. Daf International's Australian business also continues to grow fast through Western Star. Baan also believes that the Americas offer enormous growth potential, but refuses to say whether the company would prefer to acquire a local manufacturer or export kits from Europe. 1:1 Daf NV, the Dutch arm of Leyland Daf which was floated on the Amsterdam stock exchange last June, has upped net profits in the first six months of 1989 by 29% to 74.5 million Dutch Florins (S22.5 million). The company says that this "favourable trend" will continue in the second half of the year.