Rolls-Royce Holdings (LON:RR) has signed an agreement with trade union Unite, UK’s biggest union has said. The move comes after the engine maker moved to cull middle management amid its ongoing transformation.
Rolls-Royce’s share price fell sharply in the previous session, giving up 1.14 percent to 765.00p, underperforming the broader UK market, with the benchmark FTSE 100 index closing 0.19 percent lower at 7,268.19 points. The group’s shares have given up more than 23 percent of their value over the past year, as compared with about a 2.5-percent fall in the Footsie.
Rolls-Royce signs deal with Unite
Unite union announced in a statement yesterday that it had reached an agreement with Rolls-Royce covering 1,700 managers at the engine maker’s campus in Derby and Hucknall. The deal gives Unite collective bargaining and consultation rights for the Derby group of factories and opens discussions regarding the 13 other sites alongside recruitment and organising.
The union said that this was the first such agreement and the union was expecting to roll this out to all the UK sites in the coming months.
The Times noted in its coverage of the news that while Unite represents thousands of Rolls-Royce factory workers, this is the first time the management classes in the company have been so widely unionised.
Analysts on blue-chip engine maker
The 17 analysts offering 12-month targets for the Rolls-Royce share price have a median target of 1,100.00p, with a high estimate of 1,239.00p and a low estimate of 600.00p. As of August 30, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.
Rolls-Royce updated investors on its performance last month, posting a rise in revenue while increasing the costs over its problematic Trent 1000 engines.