Morrisons becomes first UK supermarket to pay £10 an hour minimum

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Morrisons has said it will pay all of its staff at least £10 an hour becoming the first grocer in the UK to make that commitment.

The business said the new deal will come into effect from April and will be a “significant” pay increase of approximately 9% for 96,000 of its staff.

The retailer said three-quarters of the increase would be funded through direct payroll investment with the remaining 25% coming from changes to the annual staff bonus.

In addition to the pay rise, Morrisons said it would offer a London weighting for staff on top of the new deal.

Morrisons chief executive David Potts said: “It’s great to be able to say that in the UK from April this year if you work at Morrisons supermarkets, you will earn at least £10 an hour. It’s a symbolic and important milestone that represents another step in rewarding the incredibly important work that our colleagues do up and down the country.

“Over the last year, we have seen renewed and widespread appreciation in the UK for our colleagues who have had an incredibly tough 2020, working tirelessly so Britain could eat well and shop safely throughout the pandemic. Morrisons colleagues have earned their status as key workers, and this pay increase, many times over.”

The grocer’s current minimum hourly pay is £9.20. Once the new deal takes effect, Morrisons staff on the minimum wage will be earning 46% more than they did in 2015.

The move has been welcomed by shopworkers’ union Usdaw. National officer Joanne McGuinness said: “The new consolidated hourly rate is now the leading rate of the major supermarkets, which is paid every hour and removes the uncertainty of a bonus payment. It is a big step forward, shows that Morrisons is prepared to invest in the staff to help grow the business and I hope that the deal is supported by our members in the ballot.

“It’s been a tough time for food retail staff who have worked throughout the pandemic in difficult circumstances. They provide the essential service of keeping the nation fed and deserve our support, respect and appreciation. Most of all, they deserve decent pay and this offer is a welcome boost.”