Ikea to introduce living wage for all staff from April next year

More than 50% of IKEA’s 9,000-strong workforce will be affected by the wage increase, it says. Some 4,500 will see their pay go up as a result.

Director of the Living Wage Foundation, Rhys Moore, said in a statement that he questions if it was even really a living wage.

Ikea is one of the most popular furniture retailers in the United Kingdom, and a fifth of British children are being conceived in Ikea beds.

“We have always supported a national minimum wage, but the move to a higher compulsory national living wage will have a devastating impact on our sector”, said ACS chief executive James Lowman.

“Introducing the Living Wage is not only the right thing to do for our co-workers, but it also makes good business sense”.

Ikea’s living wage pledge is part of a wider initiative to ensure that staff receive the right level of pay, as well as a schedule and contract that works for them, the organisation and customers.

The analysis by the Association of Convenience Stores (ACS) predicts the introduction of the new £7.20 hourly minimum wage for over-25s as of April 2016 could lead to more than 24,000 independent stores closing and 80,000 jobs being lost as a result. “This is a long-term investment in our people based on our values and our belief that a team with good compensation and working conditions is in a position to provide a great experience to our customers”.

The living wage is considered the amount a worker needs to earn to cover the basic costs of living.

The Living Wage Foundation has accredited more than 1,600 businesses, including well-known companies such as Nestle, Nationwide and British Gas.

Some big names in the industry have protested the living wage employers would have to pay out, while others have said it was still too low, especially in the capital.