In a joint statement, the the two parties said, "JLR and Unite have concluded detailed pay and conditions negotiations, a revised offer has been made by the company that will be unanimously recommended by Unite to its members."

The pay offer includes recognition of JLR's recent performance for employees and agreements on working practices with Unite that ensures that the company can meet its business plan commitments, it added.

"The headlines of the offer are - 4.5 percent pay increase with a lump sum performance recognition payment of Pound 825 per employee in year one of a two-year deal, RPI + 0.5 percent or 3 percent, whichever is greater, in the second year," it said.

However, there are no pension proposals in this pay deal, it added.

Pay talks at the company had failed in October and last month, workers union had rejected an offer by the car maker over pay and pension changes, while asking the management to either re-negotiate the proposal, or face vote for industrial action.

According to Unite, the UK's largest trade union, 96 percent of JLR workers across the company's five plants had rejected the pay deal.

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