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You can find the current article at its original source at http://www.theguardian.com/business/2015/sep/29/morrisons-supermarket-shop-floor-staff-national-living-wage-george-osborne
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Morrisons to pay shop floor staff more than Osborne's living wage | Morrisons to pay shop floor staff more than Osborne's living wage |
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Morrisons is to increase pay for 90,000 shop floor staff to £8.20 an hour from March – above the living wage calculated by independent campaigners. | Morrisons is to increase pay for 90,000 shop floor staff to £8.20 an hour from March – above the living wage calculated by independent campaigners. |
The pay rise – a hefty 20% increase from Morrisons’ current minimum wage for shop floor staff of £6.83 an hour – will apply to staff of all ages. That puts Morrisons well ahead of George Osborne’s “national living wage” of £7.20 an hour, which comes into force for over-25s from April. | |
Morrisons said the move, which would involve changes to some benefits including the end of extra pay for Sundays, would cost £40m. “We guarantee no worker will be worse off,” a spokesman said. | Morrisons said the move, which would involve changes to some benefits including the end of extra pay for Sundays, would cost £40m. “We guarantee no worker will be worse off,” a spokesman said. |
The deal, negotiated with shopworkers’ union Usdaw, will be subject to a workers’ vote on 12 November. | |
David Potts, chief executive of Morrisons, said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler. 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.” | David Potts, chief executive of Morrisons, said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler. 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.” |
The increase, which makes Morrisons the highest payer of the UK’s four biggest supermarkets, comes after German discounter Lidl agreed this month to sign up to the living wage campaign and pay 9,000 staff at least £8.20 an hour. | The increase, which makes Morrisons the highest payer of the UK’s four biggest supermarkets, comes after German discounter Lidl agreed this month to sign up to the living wage campaign and pay 9,000 staff at least £8.20 an hour. |
Years of falling real wages as a result of the financial crisis, and the realisation that the government was topping up low pay through the benefits system, have piled pressure on employers to increase wages. | Years of falling real wages as a result of the financial crisis, and the realisation that the government was topping up low pay through the benefits system, have piled pressure on employers to increase wages. |
This month Sainsbury’s increased its standard rate for shopfloor staff by 4% to £7.36 an hour, and Amazon staff pay increased to £7.20 an hour. | This month Sainsbury’s increased its standard rate for shopfloor staff by 4% to £7.36 an hour, and Amazon staff pay increased to £7.20 an hour. |
Campaigners have been targeting the annual meetings of major retailers including Morrisons, Next, Sainsbury’s and Tesco to demand the adoption of the living wage. | Campaigners have been targeting the annual meetings of major retailers including Morrisons, Next, Sainsbury’s and Tesco to demand the adoption of the living wage. |
Gill Owen, from the Living Wage Foundation, said: “This is wonderful news from Morrisons. Lidl’s announcement has prompted a review of pay practices and it shows consumers are beginning to recognise that the living wage is an important market of a responsible business. We hope more will follow in Morrisons’ footsteps.” | Gill Owen, from the Living Wage Foundation, said: “This is wonderful news from Morrisons. Lidl’s announcement has prompted a review of pay practices and it shows consumers are beginning to recognise that the living wage is an important market of a responsible business. We hope more will follow in Morrisons’ footsteps.” |
She encouraged companies to become accredited by the Living Wage Foundation so the public could guarantee that all staff working on their premises, including agency workers, were paid the living wage. | She encouraged companies to become accredited by the Living Wage Foundation so the public could guarantee that all staff working on their premises, including agency workers, were paid the living wage. |
The foundation recommends paying £7.85 outside London and £9.15 in London, but will announce new rates at the start of November. | The foundation recommends paying £7.85 outside London and £9.15 in London, but will announce new rates at the start of November. |
Lidl said it would match the foundation’s new levels if they were higher than its current plan. | |
The only accredited national high street retailer is Oliver Bonas, the fashion and jewellery chain with 44 stores. Burberry has also adopted the living wage and Ikea has pledged to pay it to its 9,000 employees from April. | The only accredited national high street retailer is Oliver Bonas, the fashion and jewellery chain with 44 stores. Burberry has also adopted the living wage and Ikea has pledged to pay it to its 9,000 employees from April. |
Joanne McGuinness, Usdaw’s national officer, said: “Morrisons’ 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. It is a big step forward and shows that the company is prepared to invest in its staff.” | Joanne McGuinness, Usdaw’s national officer, said: “Morrisons’ 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. It is a big step forward and shows that the company is prepared to invest in its staff.” |