Sainsburys

Sainsbury's has given its shop workers a 4 per cent pay rise, the highest increase for store employees in more than a decade.

It says 137,000 of its workers will see their pay rise from £7.08 an hour to £7.36 from the end of this month.

The new rate will also apply to its 40,000 workers who are under 25.

According to the British Retail Consortium, the median wages for hourly paid workers in the retail industry currently stands at £7.30 an hour.

Sainsbury's chief executive Mike Coupe praised the hard work and dedication of his staff, and saidthat the company could afford the extra wages.

The move follows the Living Wage announcement in the Budget, whereby workers aged over 25 in the UK will be paid a minimum of £7.20 an hour from April next year, rising to £9 by 2020. This compares to a minimum wage of £6.50 at present.

This move was criticised by the likes of the NFU and the British Growers' Association, with growers telling FPJ that it could lead to further mechanisation in the industry.

In a recent interview Aldi exclusively gave to FPJ, one of the firm's then buying directors, Stephen Eivers, spoke about the company's wage policy:'We’re renowned for paying above average wages,' he said.

'This is a family business to be working in, and so we like to look after all of our employees – whether they work in store, in the buying office, in the corporate responsibility department. We’ve recruited the best people in the industry, and we’re paying them above average for what they’re offered in the industry.'