M&S and Sainsbury’s to increase staff pay and provide cost-of-living support
Stuart Machin, chief executive of Marks & Spencer
Simon Roberts, chief executive of Sainsbury’s
High-street retailers M&S and Sainsbury’s have announced that they are increasing staff pay and providing additional support to help employees with the cost of living crisis.
A £15m support package by M&S will see the hourly pay for more than 40,000 employees increase next month to a minimum of £10.20. It’s the retailer’s first ever autumn pay review and follows an initial pay increase to £10.00 (from £9.50) in April this year.
M&S will also provide 4,500 salaried staff at pre-management levels in its stores and support centres with a one-off £250 voucher to spend at the retailer. Workers at distribution centre in Castle Donington will also receive a free meal per shift. (M&S already provides all-year round free everyday food items and refreshments to those working in stores.)
Stuart Machin, Chief Executive at Marks & Spencer said: “Whether you’re running a home or running a business, everyone across the country is feeling the pressure of rising costs. We want to do what we can to help ease some of that strain; that's why we have invested in price to deliver better value for our customers and, why we are investing in our colleague base pay for the second time this year. Our colleagues are our biggest asset, and we want to ensure they are fully supported and rewarded for the remarkable contribution they make to M&S.”
This month, M&S also introduced free sanitary products to colleagues across all stores and sites.
Meanwhile, Sainsbury’s has also announced a £20 million investment in pay increases for hourly paid employees, as part of a £25 million cost of living support package. Hourly retail staff pay at Sainsbury’s and Argos will go from £10.00 to £10.25 and from £11.05 to £11.30 per hour in London.
The retailer said that the decision to give staff an autumn pay increase outside of the annual pay review is ‘an unprecedented step to support colleagues when they need it most’.
The new support package will also give staff access to basic food items during shifts from the first week in October until the end of December. Permanent staff will also benefit from increased discounts at Sainsbury’s and Argos.
Simon Roberts, Chief Executive 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.”
Last week, the John Lewis Partnership (JLP) announced a £500 one-off payment to full-time workers, with a pro-rata amount for those working part-time. JLP, which owns the John Lewis department stores and Waitrose supermarkets, is also increasing by 4% the entry level pay for employees. It had previously announced that will provide free food to staff (known as ‘partners’) and temporary workers to help them cope with the cost of living crisis.