Qinetiq negotiates deal with union over pay and benefits
Staff will have reduced redundancy terms in exchange for pay rise
Qinetiq has successfully negotiated a deal with union members to
reduce redundancy terms in exchange for a pay rise.
The defence research and technology firm said that around three
quarters of the company's 6,500 employees accepted a cap in
redundancy pay in return for a 3.5 per cent salary increase.
New chief executive Leo Quinn claimed the deal was good for all
He said: "Our goal was to find a solution that strikes a balance
between an affordable and competitive pay structure for those who
remain and one that treats those who leave as a result of
The deal comes as part of a two-year programme to cut costs and
restructure the business.
It is feared as many as 1,000 jobs could be cut as Qinetiq looks
to slash its reported £457.4 million debt.
The business was recently criticised by the National Audit
office which claimed a share incentive scheme offering executives a
return of 19,990 per cent was excessive.