Sainsbury’s is increasing the pay for its staff again and offering additional benefits as it looks to attract staff in a tight labour market and support existing workers facing rising living costs.
As part of a £25m investment, the supermarket’s 127,000 hourly paid workers will get a 25p per hour increase from 16 October. Sainsbury’s noted that the rise is its first ever outside of an annual pay review and means all the staff will have had at least two pay rises this year to reflect the current squeeze on household spending power caused by inflation and surging energy prices.
The rise takes the pay increase for hourly-paid workers to 7.9% this year, although this is still behind inflation that hit 10.1% in July.
However, Sainsbury’s is also giving staff 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.
Simon Roberts, the retailer’s Chief Executive 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 £25m 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.”
Earlier this month, Sainsbury’s launched its “biggest ever September price blitz”, spending £65m on reductions and special offers to help it compete with the fast-growing discounters.
The group warned in April that its profit this financial year are likely to fall due to higher operating costs and weaker consumer spending.
NAM Implications:
- An obvious move to attract and keep staff.
- A move that not all retailers will be prepared/able to make…
- Meaning more staff disruption/shortages to be anticipated in retail.
- (resulting in more resistance to CPIs…)
