Workplace Report (July 2008)

Bargaining news

Bonus payments

New or altered bonus schemes feature in a number of recent deals on the Payline database

Workers at Linde Material Handling’s warehousing equipment plant in Basingstoke had a 3.5% increase on basic rates and supplements and the production bonus (with £5 then consolidated onto basic rates).

At the same time a new improvement bonus was introduced, based on trucks cleared for despatch, and reducing overheads. The total cost to the company was between 4.2% and 7.1%, with ‘direct’ workers getting up to £94.68 a week and ‘indirect’ workers getting up to £68.58.

In a separate deal at Linde Creighton, the national network company for Linde, basic rates of pay increased by 2.5% while the bonus increased by 5% .

The April pay deal at VT Nuclear Services (Sellafield) replaced the existing bonus schemes with a new un-capped bonus and a new funding approach. A portion of the value of earlier bonus schemes has been consolidated into basic pay, accounting for 1.8% of the 3.8% pay rise.

The deal at DHL Exel Supply Chain, Corby (Warehouse & Distribution) is for an increase of £11 per week (3.67% on lowest basic) with an improved self-funding bonus. This has a potential share out of £129,598 which, divided between the full-time equivalent of 126 warehouse staff could amount to £19.78 per person per week.


This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.