Morrisons raises pay as supermarkets fight for staff

Bradford-based supermarket giant Morrisons announced it will pay its 80,000 store and manufacturing workers a minimum of £10.20 an hour — a minimum 2% increase on their base rate — making it the “highest paying UK supermarket for store colleagues.”

Supermarkets are facing increasing competition for workers.

In addition to the hourly pay increase, Morrisons said it will pay a London location supplement of £0.85 per hour to all stores within the M25 — rather than just Inner London — taking its minimum rate of pay within the M25 to £11.05.

US private equity firm Clayton, Dubilier & Rice’s £7 billion takeover of Morrisons cleared its final regulatory hurdle this week.

The UK’s Competition and Markets Authority (CMA) formally accepted CD&R’s offer to sell 87 petrol stations to address concerns over higher fuel prices.

“The new deal is planned to start in October 2022, and means that since 2014 the hourly pay rate for Morrisons store customer assistants has gone from £6.83 per hour to £10.20, an increase of more than 40%,” said Morrisons.

“Eighteen months ago, Morrisons became the first UK supermarket to break the £10 an hour barrier for store customer assistants and today’s announcement means a further pay increase for over 80,000 Morrisons colleagues.

“The new rate of pay is the latest in a range of benefits aimed at rewarding and thanking colleagues for the important work that they do.

“Other benefits now available to all colleagues include: an unlimited 15% colleague discount – introduced during Covid to show our thanks to frontline staff and maintained to help colleagues with cost of living increases; two 10% family and friends discounts; a competitive pension; excellent holiday allowance; and, industry leading long service rewards.”

Morrisons Group People Director Clare Grainge said: “Following last year’s 8.7% pay increase for our customer assistants, Morrisons was the first UK supermarket to reach the £10 an hour mark, and we’re very pleased to be maintaining our position as the highest paying UK national supermarket.

“Today’s announcement recognises the important contribution our colleagues make in serving local communities up and down the country.”

Usdaw National Officer Joanne McGuinness said: “Usdaw has negotiated an established rate of £10.20 per hour for Morrisons workers, which is the highest basic pay rate in the supermarket sector.

“We have also secured an established rate of £11.05 for staff within the M25, the same as the London Living Wage.

“Our members in Morrisons will now be balloted on the company’s offer.”

The pay deal is subject to a ballot closing on June 20, with the final results being announced by the end of June.

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.