Morrisons commits to paying staff the living wage

The firm it was increasing the hourly payment to 8.20 pounds an hour, from a previous minimum of 6.83 pounds.

Scores of staff working at the Morrisons supermarket in Grantham are poised to get a “significant” pay rise.

Joanne McGuinness, Usdaw national officer, said: “For a few time we have been talking to the company about taking retail staff up to and beyond the Living Wage Foundation rate, now set at £7.85 an hour”.

Yesterday Mitie unveiled two contracts in its homecare business with Kensington & Chelsea and Hammersmith & Fulham councils in London, worth about £25m between now and 2020. Ruby McGregor-Smith, its chief executive, said: “It’s long overdue given the lack of increases lower paid staff have had”.

Meanwhile rival supermarket Sainsbury’s introduced a new higher wage of £7.36 at the start of this month – just above the the new national living wage of £7.20 set by chancellor George Osborne in July.

“By paying a significantly higher hourly rate, we are recognising the contribution of our excellent staff, who are so important to the revival of Morrisons”.

Morrison’s increased pay rate will be accompanied by fewer staff benefits, a company representative said. “We hope more will follow in Morrisons’ footsteps”.

Usdaw is supporting the pay move and recommending it to its members.

Earlier in the month, Morrisons announced it was to close 11 stores with the potential loss of 900 jobs as part of plans to transform the company’s fortunes.

Staff are being briefed about the details today and, subject to a positive ballot result on 12 November, the new rate will be paid from March 2016. Asda and Aldi also pay for breaks.