Aldi trumps rivals with living wage hike

The German company said on Monday that from February it would raise its minimum wage to 8.40 pounds an hour, with workers in London to receive at least 9.45 pounds an hour. Unlike a few other supermarkets, Aldi also gives employees paid breaks.

It hopes to have 1,000 stores by 2022.

“The success of Aldi in the United Kingdom and Ireland has been driven by the commitment, hard work and ambition of our employees and we will continue to maintain our leading position on pay”, said Aldi United Kingdom and Ireland chief executive Matthew Barnes.

It has also announced plans to recruit and train more than 600 apprentices over an 18-month period starting in January 2016, to support its United Kingdom expansion.

The new levels are above a compulsory “national living wage” which the British government is introducing next April for workers aged over 25.

However, Aldi has taken the move as an opportunity to trounce its Big Four rivals, who are already under pressure to compete with it on prices and exceed discount peer Lidl’s salary promise.

Osborne’s living wage is still below the amount necessary for people to live on according to the Living Wage Foundation, which sets the minimum amount at £7.85 and £9.15 in London.

The revised wage will make Aldi the highest payer among all supermarket companies. “It’s time for business to recognise we need a recovery for all”.