Several major UK grocers have announced significant increases to their hourly pay rates, with some going above and beyond to secure their place as the best-paying employers in the retail sector.
The latest bout saw budget supermarket Lidl match its rival Aldi as the best paying supermarket employer after committing to paying its shop floor staff up to £14 an hour.
The latest increase from Lidl GB, which trades from 980 stores, will see it from September 1 raise entry-level staff pay from £12.75 an hour to £13 nationally, rising to £13.95 pounds for more experienced workers.
The September increases apply to customer assistants, shift managers, warehouse operatives as well as cleaners, it said, adding that workers will also get a 10 per cent in-store discount and other benefits.
Aldi payrise
Giles Hurley, Aldi UK and Ireland chief executive, said its pay deal was firmly linked to staff performance, saying: “We firmly believe that our colleagues are the best in the business, so it is only right that they remain the best-paid and we are committed to never being beaten on pay by any other supermarket.”
Both discount supermarkets are thriving. Stephanie Rogers, Chief People Officer at Lidl GB, said: “Over the last two years, we’ve held our spot as the fastest growing bricks-and-mortar supermarket. This continued success is made possible because of the ongoing efforts of our colleagues.
“They realise that customers have no great loyalty. If they go into a supermarket and cannot find something or some other part of the service is lacking, customers will simply go elsewhere.
He said the pandemic also helped to change the status of the supermarket role. The vital role of workers in keeping people fed during the Coronavirus crisis became clear to people. “Supermarkets provided an essential service. People saw what staff did and appreciated it.”.
Experts say another key driver is increases in the minimum wages and the Government’s determination to help raise wages for the lowest paid. The National Minimum wage is a tiered system with different rates for a variety of age groups.
The “real” Living Wage, independently calculated based on the cost of living, is £12.60 per hour nationally and £13.85 per hour in London.
“One factor contributing to this is the influence of the real Living Wage, which has become a widely recognised benchmark for decent pay. Even employers who aren’t formally accredited as Living Wage Employers often align their minimum rates with Living Wage levels. This has helped raise pay standards across the industry, benefiting hundreds of thousands of low-paid workers.”
Rising wages suggests the market is tighter than some observers think it is. James Walton, chief economist at the Institute of Grocery Distribution (IGD) said: “Despite data suggesting the UK labour market is weakening with businesses reducing recruitment, the retail sector remains a major employer.
“Alongside higher labour costs, comes the need for increased productivity, to deliver added value from each hour worked. That is why mechanisation and skills are so important to retail employers as these are the main levers that make labour more effective.
Union battle
“Even with these pay rises, we cannot forget that workers are still struggling to make ends meet. Many of our members are still struggling to pay their bills, something which is having a detrimental impact on their mental health.
“Whilst pay remains essential to ensuring these issues are dealt with, it is also vital that employers also listen to the views of their workforce to fully understand the challenges they are facing. That is why we continue to call on Lidl to recognise Usdaw and give staff an independent trade union voice.”
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