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Highlights
- British firm Rolls-Royce has announced that it will pay £2,000 to about 70% of its staff to ease the cost-of-living squeeze.
- This comes days after banking major Lloyds announced a one-time payment of £1,000 to its employees.
The cost-of-living crisis is troubling most UK households as electricity and gas bills have soared. Offices are reopening after remaining shut for over two years due to the pandemic, putting an extra burden of expenses on employees like gas, lunch, childcare, etc. To make things slightly easier for the staff, employers are also announcing several perks. British multinational Rolls-Royce Holdings has taken a similar decision.
The industrial technology company has said that it will offer a £2,000 one-off payment to its UK workforce to help it deal with the high cost of living.
According to news reports, Rolls-Royce on Monday informed thousands of its employees that it is offering a one-time amount, as well as a 4% hike in the salaries of 11,000 shopfloor staff in UK manufacturing plants. The pay hike will be backdated to March, it added.
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Details of the payment
Besides the 11,000 shopfloor staff, Rolls-Royce will also offer the £2,000 payment to about 3,000 junior managers. It will take the total number of beneficiaries to 14,000, primarily based at the company's Derby and Bristol sites. This is about 70% of the firm's total workforce of 20,000.
While the junior managers will receive the money in August, the remaining unionised workers will receive the payment after the offer is accepted by Unite, the union representing thousands of the company's workers.
Last week, banking major Lloyds Banking Group made a similar announcement, saying that it will pay its over 64,000 employees a one-time bonus of £1,000 bonus in August to help them deal with the cost-of-living crisis.
Let us take a look at the stock performance of these two firms.
Rolls-Royce Holdings Plc (LON: RR.)
The engineering technology company manufactures and distributes aircraft engines and power systems to different sectors. The company expects positive momentum in its performance for FY2022 despite macroeconomic uncertainties.
At present, the firm holds a market cap of £7,656.35 million, and its share price was 1.36% up at GBX 92.75 as of 8:18 am GMT+1 on Tuesday. In the past one year, the share value has declined by over 14%, while the year-to-date (YTD) return stands at -24.85%.
Lloyds Banking Group Plc (LLOY: LON)
Lloyds offers several banking and financial services to its customers in the UK and abroad. It is the UK's largest domestic lender.
The company currently has a market cap of £30,292.80 million. Over the past one year, it has provided the shareholders with a negative return of -5.83%, while the YTD return stands at -8.53%. Shares of Lloyds Banking Group were trading at GBX 43.75, 0.01% up, at 8:05 am on 21 June 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
