Morrisons has announced a new pay deal for its employees that will see it become the first UK supermarket to guarantee a wage of at least £10 an hour.
The new pay terms will begin in April, and will facilitate a “significant” pay increase for nearly 96,000 Morrisons employees, with the majority receiving a pay increase of around 9%.
The group’s minimum hourly pay currently stands at £9.20 an hour, and its latest announcement will mean that pay has increased by over 46% since 2015.
Three quarters of the costs of the increase will be met by direct payroll investment, and a further quarter will be met by changing the discretionary annual colleague bonus scheme.
Following employee consultations, the annual budget for the discretionary bonus scheme will now be rolled into employees’ hourly rate, after employees reported that they would prefer to have a guaranteed amount in their hourly rate and receive it more regularly
David Potts, Morrisons CEO, said: “It’s great to be able to say that in the UK from April this year, if you work at Morrisons supermarkets, you will earn at least £10 an hour. It’s a symbolic and important milestone that represents another step in rewarding the incredibly important work that our colleagues do up and down the country.
“Over the last year we have seen renewed and widespread appreciation in the UK for our colleagues who have had an incredibly tough 2020, working tirelessly so Britain could eat well and shop safely throughout the pandemic. Morrisons colleagues have earned their status as key workers, and this pay increase, many times over.”
Joanne McGuinness, Usdaw National Officer, said: “The new consolidated hourly rate is now the leading rate of the major supermarkets, which is paid every hour and removes the uncertainty of a bonus payment.
“It is a big step forward, shows that Morrisons is 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.”
She added: “It’s been a tough time for food retail staff who have worked throughout the pandemic in difficult circumstances. They provide the essential service of keeping the nation fed and deserve our support, respect and appreciation. Most of all they deserve decent pay and this offer is a welcome boost.”
The pay deal announced today is subject to a ballot opening on 27 January 2021.