Morrisons to become first major supermarket to pay staff at least £10 an hour

‘Morrisons colleagues have earned their status as key workers, and this pay increase, many times over,’ says CEO

Morrisons (Getty Images)

Morrisons has announced a new pay deal that guarantees all staff will be paid at least £10 an hour – the first UK supermarket group to offer such a rate.

According to the supermarket chain, which employs around 120,000 people across the UK, the pay deal begins in April. Morrisons currently has a minimum hourly pay rate of £9.20 per hour.

The new payment policy will mean “significant” pay increases for nearly 96,000 staff members, said Morrisons, with most workers who will be moved up to the new minimum rate receiving a 9 per cent increase in their pay.

The increase in hourly pay will be primarily funded by investment into payroll, but around a quarter will be funded by changes to its bonus payouts.

Morrisons said its staff told the company they would prefer to have a guaranteed amount in their hourly rate and receive it more regularly.

David Potts, CEO of Morrisons, 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 earnt their status as key workers, and this pay increase, many times over.”

The announcement comes as a new report revealed that 45 per cent of supermarket staff in the UK earn below the real living wage, which is currently £9.50 per hour outside of London and £10.85 per hour in the capital.

The report by Citizens UK claimed that 410,000 underpaid supermarket staff, who work 28 hours per week on average in vital roles, should be given “that bit extra” as supermarkets have experienced “bumper sales” amid the pandemic.

Morrisons said there will be a London weighting in addition, with rates for inner London rising by 85p and outer London by 60p an hour.

Joanne McGuinness, Usdaw national officer, said: “The new consolidated hourly rate is now the leading rate of the major supermarkets, which is paid every hour and removes the uncertainty of a bonus payment.

“It is a big step forward, shows that Morrisons is prepared to invest in the staff to help grow the business and I hope that the deal is supported by our members in the ballot.

“It’s been a tough time for food retail staff who have worked throughout the pandemic in difficult circumstances.”