Workers at luxury carmaker Rolls-Royce have secured a pay deal worth 17.6%, unions say, averting the possibility of industrial action.

About 1,200 workers at the firm’s plant in West Sussex will receive a 10% pay rise and one-off bonus of £2,000.

Many industries are being hit by strikes as workers seek pay increases to keep up with rising living costs.

Rail workers began another 48-hour walkout on Friday and more strikes in other industries will start next week.

Figures out this week showed that prices increased by 10.7% in the year to November, the fastest rate for about 40 years.

Separate data showed that the gap between wage growth in the public and private sector remained near a record high.

Workers in the private sector saw their average pay rise at an annual rate of 6.9% between August and October, according to official figures, compared with wage growth of just 2.7% for public sector employees.

The Unite union said Rolls workers at the Goodwood factory, which builds some of the world’s most expensive luxury cars, had been “repeatedly denied… a proper pay rise”.

A consultative ballot by the union had seen a 98% vote in favour of industrial action if the demand for a pay rise in line with inflation was not met.

Unite said the agreement was the largest single pay deal in the history of the Goodwood plant.

“This is a top-notch pay deal for the Rolls-Royce workforce,” said Unite general secretary Sharon Graham.

“Rolls-Royce Motor Cars are famous and iconic because of the workers’ craft and expertise. For years the workers had been underpaid and undervalued but that’s changing. The union has won the best pay deal since the site opened.”

The union added that the agreement closed the gap “considerably” between workers at Rolls-Royce and its competitor Aston Martin.

Rolls-Royce, which is owned by Germany’s BMW, said it was “pleased” Unite had recommended the agreement to its members.

“A pay rise of 10% will be awarded to all those covered by our collective bargaining agreement from January 2023.”

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