David Potts 2

David Potts: Pay rise recognises 'excellent' staff

Morrisons has become the latest retailer to increase wages for shop-floor staff by bumping pay up to £8.20 an hour.

The pay rise, up 20 per cent from £6.83, will apply to staff of all ages and is well ahead of chancellor George Osborne’s new national living wage of £7.20, which comes into effect for over 25s in April of next year.

Morrisons said the increase is costing £40 million, and will include other changes such as removing extra pay for Sundays.

Chief executive David Potts said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler.

“By paying a significantly higher hourly rate, we are recognising the contribution of our excellent staff, who are so important to the revival of Morrisons.”

The news comes as Lidl said it was the first UK supermarket to implement the new minimum wage as recommended by the Living Wage Foundation. Fom October, Lidl UK employees will earn a minimum of £8.20 an hour across England, Scotland and Wales, and £9.35 an hour in London.

This month Sainsbury’s also increased its standard rate for shop floor staff by four per cent to £7.36 an hour, the Guardian reported.

Gill Owen, from the Living Wage Foundation, said: “This is wonderful news from Morrisons. Lidl’s announcement has prompted a review of pay practices and it shows consumers are beginning to recognise that the living wage is an important market of a responsible business. We hope more will follow in Morrisons’ footsteps.”