Sainsbury’s is increasing minimum hourly pay for shopworkers, with its national rate rising from £10 an hour to £10.25 and its London rate jumping from £11.05 an hour to £11.30.
It’s the second basic pay rise Sainsbury’s has given its shopworkers this year but still leaves them on a lower rate than store staff at Aldi, the highest paying supermarket in the UK based on minimum hourly rates. The discounter has also given two rises this year, with the latest taking the basic rate to £10.50 an hour nationally and £11.95 an hour within the M25.
Sainsbury’s said it was investing £20m into pay increases to support staff with “rising household costs”.
A further £5m is be used to give staff “access to basic food items during shifts” through the start of the winter, the supermarket said.
It is the first time the supermarket’s hourly paid workers have received an autumn pay increase in addition to the company’s annual pay review, a move it called an “unprecedented step to support colleagues when they need it most”.
The new pay rates come into action from 16 October. It is expected 127,000 hourly paid colleagues across retail, local fulfilment centres and customer service contact centres will benefit.
“Every day, I am hearing from colleagues who are really feeling the pressures of the rising cost of living,” said Simon Roberts, Sainsbury’s CEO.
“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 £25m 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.”
The new pay rates apply for both Sainsbury’s and Argos staff, and take the increase for frontline hourly paid workers to 7.9% this year and 28% over the last five years.
Read more: How much do supermarkets pay their staff?
From the first week of October to the end of December, staff will also get free food during shifts and increased store discounts.
“The free food will ensure that colleagues can have something to eat while they are at work, and the longer and deeper discounts will help colleagues plan and manage their budgets through the autumn and in the run-up to Christmas,” Sainsbury’s said.
The move “demonstrates Sainsbury’s commitment to being a leading employer” it added.
“Our top priority is to support our customers and colleagues… We are very focused on doing as much as we can to help our colleagues and their families through this autumn and winter,” said Roberts.
Temporary staff will also benefit from the pay rise and the free food, but not the discount, which is only awarded to staff after three months at the company.
The move has won the support of shopworkers union Usdaw.
“With the cost of living continually rising, we have kept open our dialogue with Sainsbury’s and we are pleased the business has responded so positively,” said David Gill, Usdaw national officer. “This is an unprecedented additional autumn pay award and the free food and additional discount will be appreciated by our members.”
Several supermarkets have increased staff pay in recent months in response to the cost of living crisis. Last month, Waitrose said it would be offering staff free meals from October to January.
Aldi gave store staff their second pay rise of the year in July.
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