The agreement on pay was reached following a vote by GMBunion members and will see around 3,200 shop floor worker receive the rise from January.
The rise is linked to November’s Retail Price Index, which was announced on Tuesday last week. Increases in 2018 and 2019 will also be linked to those years’ November RPI figures.
The new deal affects employees at JCB’s plants in Rocester, Uttoxeter, Cheadle, Rugeley, Wrexham and Foston, Derbyshire.
Chief executive officer Graeme Macdonald said: “I am pleased an agreement has been reached on a long-term pay deal for JCB’s UK shop floor employees. It gives us the stability we need to plan for 2017 and beyond as we seek to grow the business in the next few years.”
GMB Works Convenor Gordon Richardson said: “2016 has been a year of steady growth tinged with a modicum of uncertainty. Hopefully 2017 onwards will see increases in the volume of machines manufactured, generating more job security for GMB members.”