Sainsbury’s to lift minimum pay, but scrap bonuses and paid breaks
Sainsbury’s, one of the UK’s largest grocery store chains, says it will boost the minimum pay of its employees, but also scrap bonuses and paid breaks.
The group said in a statement that it will up the base rate of pay to £9.20 an hour from £8. Workers in Zones 1 and 2, compromising central London, will receive at least £9.80 an hour.
The decision comes ahead of the increase slated for April of this year in the National Living Wage to £7.83 an hour from £7.50.
Sainsbury’s said it will fund the pay increases “through ongoing cost savings within the business.”
The higher pay will, however, come at a price: The proposal would strip away both bonuses and paid breaks. Sainsbury’s acknowledged that a “small proportion of colleagues may be adversely impacted by these proposals.”
“To support these colleagues, Sainsbury’s plans to make top-up payments for 18 months to ensure that no colleague earns less than they do today during this time,” it said.
Consultation on the plans begins on Tuesday and will take place “over the coming months”. If confirmed, employees will receive the new rate of pay from September 2018.