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PRIVACY
Economic Development

Tata will look abroad if JLR pay row goes on, union told

Lord Bhattacharyya says car giant's  owner 'will not hesitate' to invest overseas if bitter wage dispute drags on

Lord Kumar Bhattacharyya

A bitter pay dispute could force owner Tata to shift investment overseas, according to the man who helped broker the Indian firm's £1.2 billion takeover.

Professor Lord Bhattacharyya, who was instrumental in persuading Tata to buy the company in 2008, said the unions' approach over current pay negotiations smacked of the "bad old days" of industrial relations.

His comments follow the rejection of a three-year pay and conditions offer which would represent a 14 per cent pay rise, amid union

The Midland-based peer warned that a range of countries, from the United States to Hungary, Poland and Middle East states, were making "substantial and very tempting offers" to JLR to invest abroad.

And he said the Tata takeover with its commitment to vital research and development work had saved the º£½ÇÊÓÆµ automotive industry from "complete destruction".

Post columnist Lord Bhattacharyya, who chairs Warwick Manufacturing Group, said: "JLR has made what appears to be a generous offer. Yet in return they find themselves embroiled in negotiations by newspaper and public opinion.

"The unions should not be airing their grievances in public. It has been suggested that JLR is making money hand over fist. Yet the investment required to take the company forward is massive. The unions need to understand that.

"And they should also understand that, though Tata does not believe in short-termism, if it finds that JLR's cost base has become too high here then it will have no hesitation in putting future investment abroad."