The John Lewis Partnership is to pay employees a 3% bonus, as well as committing to pay the voluntary living wage and implementing a wider pay rise
The employee-owned business, which is comprised of the department store chain and Waitrose supermarkets and employs around 80,000 workers, axed its bonus payment last year for the first time since 1953 due to the Covid-19 (Coronavirus) pandemic. This year’s payment of 3% of employees’ salary equates to one-and-a-half week’s wages per employee.
The retailer has also committed to paying all staff on lower pay grades the voluntary real living wage, which is set at £9.90 an hour outside London and £11.05 an hour in the capital. In addition, workers will receive a 2% pay rise, totalling an investment of £54 million.
According to the organisation, it is able to do this as its performance over the 12 months to 29 January was driven by lower costs and its highest ever sales of £4.9 billion at its department stores. Sales rose 8% on a like-for-like basis, while Waitrose supermarkets saw a 1% increase.
In a written statement, Sharon White, chair of the John Lewis Partnership, said: “With our partners, like the whole country, facing a cost of living squeeze, we believe that this is the right time to pay the voluntary real living wage, nationwide.
“We see continued uncertainty from global events affecting the economic environment, our customers, partners and society. As inflation and energy prices rise, our customers face higher living costs. While this creates uncertainties as we look ahead, we remain focused on investing significantly in our partnership plan to transform and grow our business. I am confident that by continuing to invest in our strategy we will deliver for our customers, partners, suppliers and communities.”