Marks and Spencer, Sainsbury’s, and Tesco are facing increasing calls from campaigners to implement a new rule ensuring all UK store employees receive the Real Living Wage. This push reflects growing concerns about living costs and fair pay.
Louise Eldridge, head of good work at ShareAction, criticized the retailers for moving away from previously leading the way in matching Real Living Wage rates. She said, “It’s disappointing to see supermarkets like M&S, Sainsbury’s, and Tesco stepping back after setting the pace in recent years. The latest Living Wage increase accounts for rising living costs, making it crucial to pay people a wage they can genuinely live on.”
Tesco recently agreed with trade union Usdaw to raise hourly pay rates for store and online fulfillment center workers to £13.28, representing a 5.1% increase and an investment exceeding £200 million. This increase surpasses the current national inflation rate and builds on Tesco’s significant recent investments in employee pay and benefits. Additionally, Tesco raised the London Location Allowance from £1.21 to £1.27 per hour, bringing the hourly rate within the M25 to £14.55.
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Sainsbury’s, which implemented a 5% pay rise in April, highlighted that it has increased hourly wages by 42% over the past five years. A company spokesperson emphasized, “Our colleagues are at the heart of our success, and rewarding them well remains a priority.”
M&S clarified that it has never formally committed to the Real Living Wage, but has increased UK retail colleague pay by 34% over the past four years. The retailer has also invested more than £350 million in pay and sector-leading benefits, underscoring the importance of its workforce as it aims for growth.
Overall, while these leading UK supermarkets have made significant pay advancements, campaigners urge them to align fully with the Real Living Wage to ensure all employees earn fair pay reflecting the true cost of living.