[UK] Staff shortages at Currys prompt third pay rise in 13 months

Currys has become the latest major retailer to increase wages multiple times as pressure from soaring inflation, chronic staff shortages and the ongoing cost of living crisis have led to the retailer offering workers a third pay rise in 13 months, The Guardian reports.

Currys said it was taking action to attract and retain staff, as companies throughout the UK struggle to find workers to fill a record number of job vacancies. Basic pay levels will rise by 3.5 per cent to a minimum of £10.35 an hour, or £11.43 in London, from October 30.

More than 10,000 workers are reportedly expected to benefit from the decision, which comes only a month after a previous rise came into effect. When combined with a pay rise 13 months ago, Currys said base hourly pay had gone up by 15.6 per cent in just over a year.

Inflation rose to over 10 per cent earlier this year for the first time since 1982, as sky-high energy prices and the rising cost of household essentials continue to pile pressure on workers and their families. 

The retailer’s decision follows a review set up by Currys earlier this year by a “cost of living group” made up of senior staff from across the company.

The decision by the electrical goods retailer to raise pay multiple times over a year follows similar decisions taken by other high street companies as part of the fight to recruit workers, as soaring inflation, a reduced post-pandemic UK workforce and Brexit take their toll.

The Bank of England governor, Andrew Bailey, has cautioned against large pay increases that could lead to inflation becoming “embedded” in the economy via a wage-price spiral, where higher wages and higher prices fuel each other.

But unions have dismissed the argument as “a call for a national pay cut” and called for bosses to show restraint when it comes to executive pay and profit margins.

Last month Sainsbury’s said its 127,000 hourly paid workers would get a 25p-an-hour increase to £10.25 from October, its second pay rise in a year, with the rate for staff in London stores increasing from £11.05 to £11.30. Aldi, Asda, Marks & Spencer, Pret a Manger and Tesco have also increased their pay rates twice in the past year.

Despite wage increases from some big employers, official figures reportedly show average wage growth is still falling short of inflation. Annual growth in regular pay was 5.5 per cent in the three months to June; stronger than pre-pandemic but still significantly below inflation, close to 10 per cent.

Currys said “the current economic climate and feedback from colleagues” had led to the extra pay rise before its regular pay review in the spring. Workers usually receive results in August.

Alex Baldock - group chief executive - said, “Every day I hear from colleagues who are feeling the impact of the rising cost of living and we’re determined to do what we can to help.”

The retailer is offering staff a discount of between 3 per cent and 5 per cent every week on shopping at major supermarkets such as Asda, Morrisons and Sainsbury’s and free counselling on budgeting.

The new pay rate is higher than the legal minimum set by the government - £9.50 an hour for workers aged 23 and over - but remains below the “real living wage” figure of £10.90 an hour across the UK and £11.95 in London that the 11,000 employers accredited by the Living Wage Foundation charity use.

At the end of September, the foundation launched the annual increase in the living wage two months earlier than planned. It recommended its biggest single rise yet in recognition of the intense pressure on households from skyrocketing energy prices and the highest inflation rate in 40 years.

Lidl and Marks & Spencer also increased hourly pay, at the end of last month. Lidl moved to the top of the retail pay league by hiking entry-level hourly rates from £10.10 to £10.90 outside the capital and from £11.30 to £11.95 within the M25. Pay for an eight-hour shift, however, works out at only 50p more than its rival Aldi, which pays for statutory breaks.

Source: The Guardian

(Links and quotes via original reporting)

Currys has become the latest major retailer to increase wages multiple times as pressure from soaring inflation, chronic staff shortages and the ongoing cost of living crisis have led to the retailer offering workers a third pay rise in 13 months, The Guardian reports.

Currys said it was taking action to attract and retain staff, as companies throughout the UK struggle to find workers to fill a record number of job vacancies. Basic pay levels will rise by 3.5 per cent to a minimum of £10.35 an hour, or £11.43 in London, from October 30.

More than 10,000 workers are reportedly expected to benefit from the decision, which comes only a month after a previous rise came into effect. When combined with a pay rise 13 months ago, Currys said base hourly pay had gone up by 15.6 per cent in just over a year.

Inflation rose to over 10 per cent earlier this year for the first time since 1982, as sky-high energy prices and the rising cost of household essentials continue to pile pressure on workers and their families. 

The retailer’s decision follows a review set up by Currys earlier this year by a “cost of living group” made up of senior staff from across the company.

The decision by the electrical goods retailer to raise pay multiple times over a year follows similar decisions taken by other high street companies as part of the fight to recruit workers, as soaring inflation, a reduced post-pandemic UK workforce and Brexit take their toll.

The Bank of England governor, Andrew Bailey, has cautioned against large pay increases that could lead to inflation becoming “embedded” in the economy via a wage-price spiral, where higher wages and higher prices fuel each other.

But unions have dismissed the argument as “a call for a national pay cut” and called for bosses to show restraint when it comes to executive pay and profit margins.

Last month Sainsbury’s said its 127,000 hourly paid workers would get a 25p-an-hour increase to £10.25 from October, its second pay rise in a year, with the rate for staff in London stores increasing from £11.05 to £11.30. Aldi, Asda, Marks & Spencer, Pret a Manger and Tesco have also increased their pay rates twice in the past year.

Despite wage increases from some big employers, official figures reportedly show average wage growth is still falling short of inflation. Annual growth in regular pay was 5.5 per cent in the three months to June; stronger than pre-pandemic but still significantly below inflation, close to 10 per cent.

Currys said “the current economic climate and feedback from colleagues” had led to the extra pay rise before its regular pay review in the spring. Workers usually receive results in August.

Alex Baldock - group chief executive - said, “Every day I hear from colleagues who are feeling the impact of the rising cost of living and we’re determined to do what we can to help.”

The retailer is offering staff a discount of between 3 per cent and 5 per cent every week on shopping at major supermarkets such as Asda, Morrisons and Sainsbury’s and free counselling on budgeting.

The new pay rate is higher than the legal minimum set by the government - £9.50 an hour for workers aged 23 and over - but remains below the “real living wage” figure of £10.90 an hour across the UK and £11.95 in London that the 11,000 employers accredited by the Living Wage Foundation charity use.

At the end of September, the foundation launched the annual increase in the living wage two months earlier than planned. It recommended its biggest single rise yet in recognition of the intense pressure on households from skyrocketing energy prices and the highest inflation rate in 40 years.

Lidl and Marks & Spencer also increased hourly pay, at the end of last month. Lidl moved to the top of the retail pay league by hiking entry-level hourly rates from £10.10 to £10.90 outside the capital and from £11.30 to £11.95 within the M25. Pay for an eight-hour shift, however, works out at only 50p more than its rival Aldi, which pays for statutory breaks.

Source: The Guardian

(Links and quotes via original reporting)