UK's Sainsbury's raises salaries again, offers food benefits

UK’s Sainsbury’s raises salaries again, offers food benefits

An employee lays out groceries at a Sainsbury’s supermarket in Richmond, West London, UK on June 27, 2022. The picture was taken on June 27, 2022. REUTERS/Henry Nicholls

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LONDON, Sep 13 (Reuters) – British supermarket group Sainsbury’s (SBR.L) said on Tuesday it would raise wages for its workers again as it hopes to attract and retain staff amid a tight job market.

The UK’s second-biggest grocer and one of the country’s biggest employers said 127,000 hourly workers would receive a 25p an hour raise from 16 October, costing him £20m ($23.4m).

Sainsbury’s said the raise, the first in history outside of the annual pay review, will help its employees navigate the cost-of-living crisis.

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The hourly wage of his workers will rise from £10 to £10.25 and from £11.05 to £11.30 in London.

The increase brings pay increases for frontline hourly workers to 7.9% this year. However, inflation reached 10.1% in July.

With the UK unemployment rate at its lowest level since 1974, the Bank of England is keeping a close eye on payout calculations as it contemplates further interest rate hikes. read more

Sainsbury’s said it is also giving staff access to basic food during shifts from the first week of October through the end of December and is increasing discounts at Sainsbury’s and Argos. This will cost the company an additional £5 million.

Other retailers, including market leader Tesco (TSCO.L) and John Lewis, are also improving benefits for workers by tempting them with free food and basic necessities. read more

In April, Sainsbury’s warned of a drop in profits for this fiscal year as soaring inflation pushes up its costs and hits shoppers’ spending. read more

Its shares fell 2% at 0949 GMT, pushing 2022 losses to 24%.

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Reporting by James Davy; edited by William James and Tomasz Janowski

Our standards: Thomson Reuters Trust Principles.

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