Unite said the pay and conditions deal is for two years for workers at the luxury car group, which has its engine manufacturing centre at the i54, north of Wolverhampton.
Workers will receive a two per cent pay increase in the first year and in the second year will receive a pay increase in line with the retail price index inflation rate plus 0.5 per cent.
In addition, if workers approve the deal, which has an anniversary date of September 1, they will receive an additional £1,000.
Unite believes it reasonable to calculate that the two-year pay deal is worth 8.4 per cent overall for the workforce.
The union has also secured recognition for the first time for many junior managers at the company, as part of the deal. Unite has also secured some improvements in the company’s defined benefit pension scheme.
The company issued a statement that said: “Jaguar Land Rover is pleased to confirm that the company has reached an agreement with trade unions following its recent pay and conditions negotiations. The snions have agreed to unanimously recommend the offer to the workforce and a ballot will take place in the near future.”
Unite national officer Des Quinn said: “This is a welcome pay increase and rewards the hard work and dedication of Jaguar Land Rover’s workforce.
“Securing recognition for junior managers at Jaguar Land Rover is particularly significant and Unite will ensure that the concerns and aspirations of this section of the workforce are fully accounted for in future.
“This pay deal demonstrates the value of Unite membership. Unite will always ensure that workers are properly rewarded for their hard work.”
The pay deal, which is being recommended by Unite, is subject to approval by the union’s membership at the company.