M&S Increases Store Worker Pay by 6.4%, Withdraws Living Wage Pledge
Marks & Spencer (M&S) has announced a significant pay increase for its retail staff, set to take effect on April 1. The new hourly wage will rise by 6.4%, bringing the nationwide rate to £13.41. Employees in London will see an even higher rate of £14.74 per hour.
M&S Pay Increase Details
- New nationwide hourly pay: £13.41
- New London hourly pay: £14.74
- Effective date: April 1
- Previous pay aligned with the real living wage
This pay hike positions M&S above the upcoming national minimum wage of £12.71 per hour for workers aged 21 and older, which will also be effective from April 1. However, the retail giant has decided to withdraw its commitment to pay in line with the real living wage, which is set at £13.45 nationwide and £14.80 in London.
Response from Activists
Shareholder activists, specifically the organization ShareAction, have urged M&S to reconsider its decision. They describe the real living wage as essential for workers, especially during times of rising living costs. Louise Eldridge, ShareAction’s head of good work, emphasized the importance of maintaining wages that reflect the actual cost of living. She stated that failure to do so risks affecting workers’ livelihoods and the overall business environment.
M&S Financial Commitment
Despite withdrawing from the real living wage commitment, M&S has invested over £350 million in employee compensation over the last four years. This translates to an impressive 34% increase in wages during this period. The forthcoming pay rise for staff will cost the company over £70 million and is positioned as higher than the current inflation rate.
Statements from M&S Leadership
Stuart Machin, the CEO of M&S, expressed satisfaction with the company’s latest wage increase. He referred to the pay rise as a “good cost” and highlighted M&S’s dedication to providing competitive compensation and benefits. Machin acknowledged the crucial role of employees in the company’s growth and transformation strategies.
In conclusion, while M&S is increasing pay for its workers, the shift away from the real living wage has raised concerns from various stakeholders. The situation underscores the challenges around employee compensation amidst rising costs of living in the UK.
