Engaging our employees

We recognise the strain the economic climate is placing on our workforce and have implemented a number of specific measures to help address this, in addition to our ongoing commitments and existing support mechanisms.
In the UK, national-level pay negotiations took place with the Group’s UK recognised Trade Unions during the first half of 2022. A deal was reached, in principle, which was then put to a ballot with the Trade Unions’ members who voted overwhelmingly in favour of acceptance. As part of that two-year deal, those covered by collective bargaining received a 6.75% salary increase for 2022 and we have agreed a 6% salary increase for 2023 which came into effect in January 2023. This pay deal, which has been applied to approximately 27,000 manual and professional staff across the UK, will help address the increased cost of living, whilst respecting affordability for the Group and our customers.
We also made two £1,000 payments to approximately 34,000 eligible UK employees to help address the increased cost of living.
We have structures in place to work with Trades Union representatives in our local markets, where it is appropriate and legally acceptable.
  • Of our UK workforce, 72% are covered by collective bargaining agreements.
  • Approximately 55% of the UK workforce are Trades Union members.
  • In the US, approximately 12% of the workforce is covered by a collective bargaining agreement.
  • In Australia, approximately 20% of the workforce is covered by a collective bargaining agreement.
In the UK, BAE Systems received accreditation as a Real Living Wage employer in 2021 and we continue to uphold our commitments in this regard for our own employees and those working on our sites.
To address critical talent retention, the Inc. team executed a targeted review of employees identified with critical skills to deliver off-cycle salary increases that were meaningful and intended to improve market position in order to retain these key employees. In addition to these targeted increases, the team completed an assessment to extend the eligibility for short- and long-term incentive plan participation to align with market practices.