ROLLS-ROYCE car workers have overtaken their counterparts at Ford and

Nissan to win by far the best pay deal in the industry. Not only does

their 10.33% agreement beat the previous 10.2% won by the other two

groups but they also become the first car workers to win a two-hour

reduction in the working week.

The 4000 manual workers based at Rolls-Royce's main site at Crewe have

become the pace-setters on pay while providing a boost to the

Confederation of Shipbuilding and Engineering Unions' campaign for a

shorter working week for two million engineering workers.

The car manufacturer, now part of the Vickers group, is understood to

have won productivity concessions to enable weekly production to be

increased from 60 to 64 vehicles. Basic weekly rates go up by between

#15.33 and #21.25 taking the range to #163.70 to #226.94. The company

maintains the deal adds 9.5% to gross earnings.

CSEU general secretary Mr Alex Ferry said the deal to reduce the

working week by one hour to 38 hours from July 1 and a further cut to 37

hours from January 1, was the 29th concluded and that talks were

continuing with a further 49 companies.

The Rolls announcement was followed by a major breakthrough at British

Aerospace, so far the major stumbling block in the unions' campaign on

the working week. BAe offered a 12-month deal to cut the week to 37

hours for 9000 workers in military aviation plants in north Lancashire.

In addition, the company offered to implement a four-day week in 1991.

The new deal, if approved, could end a 14-week strike by 3000 manual

workers at Preston, which has been at the forefront of the campaign. It

could also prevent a threatened strike by 6000 more at factories in

Warton and Samlesbury, and lead to a settlement for another 5500 at

Chester and Kingston upon Thames.

Union leaders are likely to recommend acceptance at a meeting in

Preston tomorrow.

The deal would mean a 38-hour week in all three sites, with a

reduction to 37 hours 12 months after an agreement is implemented. The

working week for both day and night shifts would then be cut to four

days.

Meanwhile, the executive of the Amalgamated Engineering Union will

decide today whether it can sign the recent Ford agreement in the light

of continuing opposition from its craft members.