Morrisons has become the first supermarket chain in the UK to reach a minimum pay milestone of £10 an hour for all colleagues who have passed their probation period.
In addition to the hourly pay increase, Morrisons will pay a London weighting. Rates for inner London will be 85p and for outer London 60p per hour. This is an increase on Morrisons previous 75p inner London and 50p in outer London hourly weighting.
The pay deal is subject to a ballot opening on 27 January 2021, closing on 7 February, and the final results being announced on 12 February. The vote will be determined in part by members of trade union USDAW.
The announcement was the second market-first for the chain this week after it announced earlier that it would bar customers from entering its shops without a face mask, save for those that could provide proof of a medical exemption.
In other news, Morrisons has offered the use of their premises to administer COVID vaccines.
Morrisons employs close to 96,000 people, the majority of which will see their wage increase 9% with the new pay deal. Morrisons’ minimum hourly pay currently stands at £9.20 for those that have passed their probation period.
Three-quarters of the costs of the increase will be met by direct payroll investment and a quarter by changing the discretionary annual colleague bonus scheme. Having listened hard to colleagues, staff said they would prefer to have a guaranteed amount in their hourly rate and receive it more regularly. So, the annual budget for the discretionary bonus scheme is being rolled into colleagues’ hourly rate, which is paid every four weeks.
David Potts, Morrisons CEO, said: “It’s great to be able to say that in the UK from April this year, if you work at Morrisons supermarkets, you will earn at least £10 an hour. It’s a symbolic and important milestone that represents another step in rewarding the incredibly important work that our colleagues do up and down the country.”
“Over the last year we have seen renewed and widespread appreciation in the UK for our colleagues who have had an incredibly tough 2020, working tirelessly so Britain could eat well and shop safely throughout the pandemic. Morrisons colleagues have earned their status as key workers, and this pay increase, many times over.”
Joanne McGuinness, Usdaw National Officer said the move is a “big step forward” for food retail staff who have worked throughout the pandemic in difficult circumstances.
“They provide the essential service of keeping the nation fed and deserve our support, respect and appreciation. Most of all they deserve decent pay and this offer is a welcome boost,” she said.