John Lewis boosts staff pay despite losses
Retail giant John Lewis has announced a £108m investment in staff pay despite losses at the retail giant tripling over its last financial year.
The John Lewis Partnership, which also owns supermarket Waitrose, announced on Wednesday it will hike shop floor pay by 6.9 per cent, which it says will boost the pay packet of its full-time partners by £1,600 per year.
The retail giant added it is committed to investing in wages despite repeated losses and a long-running dispute over its dropping of partner bonuses, which have been suspended for three years running.
The retailer reported a tripling of losses in September when its loss before tax and exceptional increased to £88m from £30m the year before.
The partnership blamed national insurance contributions and a new packaging levy for its worse performance, which came despite an increase in revenue.
The pay boost will see its minimum wage rise to £14.80 in London and £13.25 in the rest of the UK, with the retailer claiming 90 per cent of this investment is a voluntary contribution beyond minimum wage requirements. The National Living wage is currently £12.21 per hour, and will rise to £12.71 in April.
John Lewis yet to confirm partner bonus
The retailer suspended its bonus system in 2020 for the first time since 1953, after it was hit by store closures during lockdown.
Company chair Jason Tarry said at the time he could not guarantee a return of the bonus, citing a “challenging” economic backdrop.
Last year the group recommitted to its “never knowingly undersold” price pledge, which it had dropped in 2022.
The partnership told City PM this pay update is unrelated to its bonus, with a decision to be taken by the board next month.
Helen Webb, the partnership’s chief people officer, said: “Our partners are the heartbeat of our business. This £108m investment is about putting more money into their pockets month-in, month-out.
“This pay growth demonstrates a sustained commitment to partner pay, consistent with previous years. This ensures that the rewards for our partners’ hard work are built into their monthly pay as we continue to invest in the future of the partnership.”