United Kingdom grocer Morrisons boosts staff pay

Wm Morrison Supermarkets Plc will increase the minimum hourly rate of pay for its staff by 20 percent a month ahead of the introduction of the United Kingdom government’s National Living Wage next year.

“The new consolidated hourly rate is now the highest of the big four supermarkets, which is paid every hour not just when staff work at times that attract premium pay”.

Sainsbury’s, Lidl and Starbucks have all recently announced pay rises for shop floor staff.

In London it will be £9.35 an hour.

Both retailers are now in line with the recommendations of the Living Wage Foundation, which currently calls for employers to pay a minimum of £7.85 per hour, although it is expected to announce an increase to that figure later this year.

Lidl said it would match the foundation’s new levels if they were higher than its current plan.

Scores of staff working at the Morrisons supermarket in Grantham are poised to get a “significant” pay rise. That came on top of 4000 job cuts at the company in the last six months, as it shrunk its head office operations and sold off its convenience store operations.

It also reported a 47% drop in half-year pre-tax profits to £126m.

Morrisons said the move, which would involve changes to a few benefits including the end of extra pay for Sundays, would cost £40m.

Morrisons said more than 90,000 staff, across all age brackets, will benefit from the move, which will cost it £40m a year.

“It is a big step forward, shows that the company are prepared to invest in the staff to help grow the business and I hope that the deal is supported by our members in the ballot”.

Asda will pay a standard hourly rate of £7 an hour from 1 October, while at Aldi it is £8.15.