[UK] Morrisons cites government cost hikes for lack of staff pay rises

The UK’s fifth largest supermarket group, Morrisons, has told workers that it will not be offering significant pay rises this year as it contends with higher costs, Yahoo reports.

The supermarket chain is currently in dispute with Usdaw (Union of Shop, Distributive and Allied Workers) over its plans regarding pay.

Usdaw reportedly represents around 45,000 Morrisons staff. It said  Morrisons had refused to offer an increase beyond the national living wage.

The UK’s national living wage is £12.21 per hour for workers aged 21 and over. This will increase by 4.1 per cent to £12.71 in April.

The minimum wage for workers between 18 and 20 will increase by 8.5 per cent to £10.85 per hour.

Morrisons connected its decision to pay staff the minimum permitted amount to a “number of challenges”. These reportedly include £200 million in “unexpected” cost increases which came into force last April, including changes to national insurance contributions.

In addition, the supermarket group cited pressure from “strong competition for sales and market share” and the impact of a cyberattack on its technology supplier Blue Yonder in late 2024.

A Morrisons spokesperson said, “On top of this, over the last financial year, we’ve invested over £100 million in colleague hourly pay, and with the national living wage increase in April 2026, we will invest a further £70 million.

“Against this backdrop, we have to balance any further pay offers with the overall performance, affordability and long-term stability of the business.

“We have not been able to present an offer to the Usdaw national committee at this time, and the union has confirmed they will now follow the process and proceed with a ballot of their membership.

“It is Morrisons’ clear position that we want to continue the dialogue with Usdaw.”

Darren Matthews - Usdaw national officer - said, “It is a sad day when one of the largest retailers in the country is now a national living wage employer, particularly as they were once one of the highest paying of the supermarkets.

“We have to question whether this is the result of private equity taking over a family-run business.

“We are very disappointed that the company has not meaningfully engaged with Usdaw in trying to secure a fair pay deal for our members, who are core to the success of the business.

“We urge the company to change their stance and come back to the negotiating table.”

Source: Yahoo

(Quotes via original reporting)

The UK’s fifth largest supermarket group, Morrisons, has told workers that it will not be offering significant pay rises this year as it contends with higher costs, Yahoo reports.

The supermarket chain is currently in dispute with Usdaw (Union of Shop, Distributive and Allied Workers) over its plans regarding pay.

Usdaw reportedly represents around 45,000 Morrisons staff. It said  Morrisons had refused to offer an increase beyond the national living wage.

The UK’s national living wage is £12.21 per hour for workers aged 21 and over. This will increase by 4.1 per cent to £12.71 in April.

The minimum wage for workers between 18 and 20 will increase by 8.5 per cent to £10.85 per hour.

Morrisons connected its decision to pay staff the minimum permitted amount to a “number of challenges”. These reportedly include £200 million in “unexpected” cost increases which came into force last April, including changes to national insurance contributions.

In addition, the supermarket group cited pressure from “strong competition for sales and market share” and the impact of a cyberattack on its technology supplier Blue Yonder in late 2024.

A Morrisons spokesperson said, “On top of this, over the last financial year, we’ve invested over £100 million in colleague hourly pay, and with the national living wage increase in April 2026, we will invest a further £70 million.

“Against this backdrop, we have to balance any further pay offers with the overall performance, affordability and long-term stability of the business.

“We have not been able to present an offer to the Usdaw national committee at this time, and the union has confirmed they will now follow the process and proceed with a ballot of their membership.

“It is Morrisons’ clear position that we want to continue the dialogue with Usdaw.”

Darren Matthews - Usdaw national officer - said, “It is a sad day when one of the largest retailers in the country is now a national living wage employer, particularly as they were once one of the highest paying of the supermarkets.

“We have to question whether this is the result of private equity taking over a family-run business.

“We are very disappointed that the company has not meaningfully engaged with Usdaw in trying to secure a fair pay deal for our members, who are core to the success of the business.

“We urge the company to change their stance and come back to the negotiating table.”

Source: Yahoo

(Quotes via original reporting)