The John Lewis Partnership (JLP) is increasing its minimum rates of staff pay by 10 per cent from the beginning of April.
The group, which owns John Lewis department stores and the Waitrose supermarket chain, said minimum hourly rates would rise to £11.55 across the UK, which is above the Government’s national living wage, which will increase by 9.8 per cent to £11.44 an hour.
The partnership’s rate for London staff will rise to £12.89 pounds. JLP said the pay hikes would cost the group £116million.
Pay boost: John Lewis Partnership is increasing its minimum rates of staff pay by 10% from the beginning of April
It said the budget for pay hikes was the ‘highest ever increase for JLP.’
The Bank of England is keeping a close eye on wage settlements as it assesses the direction of interest rates. It fears rapid wage growth could add more inflationary pressure across the economy.
There have been reports that JLP plans to slash as many as 11,000 jobs over the next five years. It is looking at cutting its 76,000 strong workforce by at least 10 per cent.
Jobs across the group’s head office, department stores and supermarkets could be at risk, reports have suggested. JLP currently employs around 76,000 people.
In January, chairman Sharon White told staff there would be ‘quite bold changes’ as the business looks to return to profit this year.
Last month, in a letter to White, the GMB union said it could ballot workers to walk out if the chairman did not urgently meet with them. Around 250 JLP staff are members of the union.
The union’s national officer Nadine Houghton wrote in February: ‘If workers do not get the answers they feel they deserve, they will not hesitate to request GMB begins a ballot of workers.’
JLP has struggled for several years, posting a £234million loss for its last announced fiscal year, with staff not receiving a bonus. Sales for the group fell 2 per cent to £12.25billion, as steady sales at its department store chain only partly offset a 3 per cent drop in sales at Waitrose.
The retailer has been hit hard by the pandemic and high inflation.
White, who is is stepping down in February 2025 at the end of her five-year tenure, previously said JLP was aiming to return to sustainable profit by the 2027/28 financial year.
