Sainsbury’s staff get jump on living wage

Thomson ReutersA Sainsbury’s supermarket sign is seen in LondonLONDON (Reuters) – British supermarket chain Sainsbury’s will hand its 137,000 non-management store staff their highest pay increase in more than a decade this month, it said on Thursday, lifting its basic pay above the recently announced national living wage.

Sainsbury’s said it would not differentiate between over and under 25s in its workforce, meaning 40,000 younger store staff will receive the new wage.

It comes ahead of the introduction of the National Living Wage for workers aged over 25, starting at £7.20, from April next year – with the retail sector expected to be among those most affected by the change.

The increase in the hourly rate will have no effect on current employee benefits such as discount cards and paid breaks, a Sainsbury spokeswoman said by phone.

Tesco already pays its shop workers £7.39 an hour although staff are facing a pay freeze this year.

Sainsbury’s was one of a string of retailers to face questions at annual shareholder meetings about low staff pay from campaigners at Share Action and Citizens UK.

Sainsbury’s chief executive Mike Coupe praised the hard work and dedication of his staff.

“We know what a difference they make to our customers each and every day and we’re totally committed to rewarding them well for the great service they provide”. The trade union Usdaw said it would continue to negotiate on behalf of those who missed out, but Joanne McGuinness, a national officer at Usdaw, said: “I’m pleased the company has listened to us, as significant increases in retail pay are long overdue”.

Asda said its hourly rate of pay is now £6.89, outside of London, a figure which will increase to £7.00 in October as part of its annual pay review. The latest increase does not apply to store managers, whose pay settlements are dealt with separately, or under-18s being paid an introductory training rate for their first six months.