[UK] BrewDog backs out of real living wage commitment

In the UK, the craft beer firm BrewDog has announced that it will no longer pay workers the real living wage, BBC News reports.

From April, employees will instead receive the government's national minimum wage of £11.44 an hour. A rate that is 56p below the £12 cost of living-based real living wage.

BrewDog reportedly described the move as "necessary"; part of an effort to return to profitability following a £24m operating loss in 2023.

Former staff, however, have accused the brewing giant of "abandoning its principles".

A letter to employees - seen by BBC Scotland News - said "hard decisions" had to be taken to maintain financial stability despite a "bumper" festive period.

The Aberdeenshire-based company was founded by James Watt and Martin Dickie. It had paid the voluntary wage since 2015.

Bryan Simpson - hospitality organiser of Unite - told BBC News, "To withdraw the real living wage now, during the most acute cost of living crisis in a generation is outrageous.

"We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions."

The real living wage is separate from the government's national living wage, it is independently calculated based on living standards in the UK.

On April 1, the rate will increase to £12 an hour outside London and £13.15 for workers in the capital on 1 April, in line with inflation.

BrewDog employees over the age of 23 will get a slight pay bump, taking them from £10.90 to £11.44 but those working in London will see no increase from their current rate of £11.95.

Blog posts on the company website referencing its status as a living wage employer have reportedly been removed.

The Punks with Purpose campaign group for ex-workers - which was established in the wake of mistreatment allegations in 2021 - said, "The real Living Wage has been a cornerstone of BrewDog's public identity for years.

"This real-terms pay cut for hard-working front line staff proves there is no principle too dearly held for them to abandon and is directly opposed to BrewDog's previous claim that their 'crew are their most important resource' and giving them fair pay for the work they do is one of their 'core beliefs'."

In the 2022-23 financial year, BrewDog's revenue reportedly grew to £321.2m. However, it blamed a £24m operating loss on increased production costs for its most popular product, Punk IPA, and rising energy bills at its Ellon plant.

A BrewDog spokesperson said, "As a result of the changes we're making - and despite unprecedented challenges in the hospitality sector - our staff outside London will be getting a 4.95% increase in base pay, and crew currently working in London will be paid 4.5% above the National Living Wage.

"We have always been fully committed to doing the best we can for our people, and our benefits package is far more generous than the industry average."

Source: BBC News

(Link and quotes via original reporting)

In the UK, the craft beer firm BrewDog has announced that it will no longer pay workers the real living wage, BBC News reports.

From April, employees will instead receive the government's national minimum wage of £11.44 an hour. A rate that is 56p below the £12 cost of living-based real living wage.

BrewDog reportedly described the move as "necessary"; part of an effort to return to profitability following a £24m operating loss in 2023.

Former staff, however, have accused the brewing giant of "abandoning its principles".

A letter to employees - seen by BBC Scotland News - said "hard decisions" had to be taken to maintain financial stability despite a "bumper" festive period.

The Aberdeenshire-based company was founded by James Watt and Martin Dickie. It had paid the voluntary wage since 2015.

Bryan Simpson - hospitality organiser of Unite - told BBC News, "To withdraw the real living wage now, during the most acute cost of living crisis in a generation is outrageous.

"We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions."

The real living wage is separate from the government's national living wage, it is independently calculated based on living standards in the UK.

On April 1, the rate will increase to £12 an hour outside London and £13.15 for workers in the capital on 1 April, in line with inflation.

BrewDog employees over the age of 23 will get a slight pay bump, taking them from £10.90 to £11.44 but those working in London will see no increase from their current rate of £11.95.

Blog posts on the company website referencing its status as a living wage employer have reportedly been removed.

The Punks with Purpose campaign group for ex-workers - which was established in the wake of mistreatment allegations in 2021 - said, "The real Living Wage has been a cornerstone of BrewDog's public identity for years.

"This real-terms pay cut for hard-working front line staff proves there is no principle too dearly held for them to abandon and is directly opposed to BrewDog's previous claim that their 'crew are their most important resource' and giving them fair pay for the work they do is one of their 'core beliefs'."

In the 2022-23 financial year, BrewDog's revenue reportedly grew to £321.2m. However, it blamed a £24m operating loss on increased production costs for its most popular product, Punk IPA, and rising energy bills at its Ellon plant.

A BrewDog spokesperson said, "As a result of the changes we're making - and despite unprecedented challenges in the hospitality sector - our staff outside London will be getting a 4.95% increase in base pay, and crew currently working in London will be paid 4.5% above the National Living Wage.

"We have always been fully committed to doing the best we can for our people, and our benefits package is far more generous than the industry average."

Source: BBC News

(Link and quotes via original reporting)