Morrisons has announced its intention of a new pay deal for its store colleagues, becoming the first UK supermarket group to guarantee pay of at least £10 an hour.
The pay deal announced is subject to a ballot opening on 27 January 2021, closing on 7 February, and the final results being announced on 12 February.
The new deal will start in April and would mean a significant pay increase for nearly 96,000 Morrisons staff with the majority of its employees set to receive a pay increase of approximately 9%.
The supermarkets current minimum hourly pay stands at £9.20 an hour, for staff out of the probationary period, and the announcement means that since 2015, pay has increased by over 46%.
The cost of the increase will have three quarters of the costs being met by direct payroll investment and a quarter by changing the discretionary annual colleague bonus scheme.
After listening to colleagues, who said they would prefer to have a guaranteed amount in their hourly rate and receive it more regularly, so the annual budget for the discretionary bonus scheme is being rolled into the companies hourly rate.
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.
“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.”
In addition to the hourly pay increase, Morrisons will pay a London weighting.
Rates for inner London will be 85p and for outer London 60p per hour. This is an increase on the previous 75p inner London and 50p in outer London hourly weighting.