Sainsbury’s staff to see pay increase amid £25m support package

Sainsbury’s has unveiled a £25m cost-of-living support package for hourly paid employees to help support them with rising household costs, £20m of which will go towards a pay increase. Employees will receive an Autumn pay increase outside of their annual pay review, in what the group called an “unprecedented” step to support its workers during the cost-of-living crisis. Sainsbury’s and Argos hourly retail pay will go from £10.00 to £10.25 and from £11.05 to £11.30 per hour in London. Sainsbury’s said the move will bring investment into pay this year to £150m while taking the pay increase for frontline, hourly paid workers to 7.9% this year and 28% over five years. The new pay rates will be effective from 16 October and it is expected that 127,000 hourly paid employees across retail, local fulfilment centres and customer service contact centres will benefit. The new support package will also give employees access to basic food items during shifts from the first week in October until the end of December and increased discounts at Sainsbury’s and Argos. In addition to supporting its staff, the supermarket said it is also helping customers through its biggest ever September price investment of £65m. This is part of its two-year plan to invest £500m in low prices by March 2023, supported by a cost saving programme that “enables Sainsbury’s to reinvest where it matters most”. As outlined at its preliminary results in April, while the investment in support through the cost-of-living will mean lower profits this year compared to last year, the group said that “focusing on support for customers and colleagues has to be the priority in the current circumstances”. Simon Roberts, CEO of Sainsbury’s, said: “Every day, I am hearing from colleagues who are really feeling the pressures of the rising cost of living. That’s why we are doing everything we can to help our colleagues as they face rising bills and living costs this autumn by investing £25 million into a package of support, including an early pay increase. This is the first time we have given two pay rises in the same year. “Our top priority is to support our customers and colleagues. We are proud of our track record on colleague pay and, with this latest package of an additional pay rise, free food at work and bigger colleague discounts, we are very focused on doing as much as we can to help our colleagues and their families through this autumn and winter.” David Gill, Usdaw national officer, added: “We continue to work closely with Sainsbury’s on colleague pay and the 5.3% increase the company announced in March 2022 was fully supported by 92% of our membership. “With the cost of living continually rising, we have kept open our dialogue with Sainsbury’s and we are pleased the business has responded so positively. This is an unprecedented additional Autumn pay award and the free food and additional discount will be appreciated by our members. It is a very challenging time at present and we are particularly pleased that this additional increase, due to take effect from October 2022, will not replace the usual pay review process which takes place annually.”