Marks & Spencer gives 55,000 workers pay rise but drops real living wage pledge
Retail giant Marks & Spencer has withdrawn its pledge to pay workers a real living wage, despite announcing pay rises for 55,000 store workers.
From April 1, the high street chain will increase pay for retail staff by at least 6.4 per cent, setting the new rates at £13.41 per hour nationwide or £14.74 per hour for those based in London.
These revised figures mean the retailer will offer prices above the national minimum wage, which is set to rise to £12.71 per hour for people aged 21 and over across the UK from the same date.
But M&S’s new pay structure is no longer aligned with the real living wage, a voluntary measure calculated to reflect the real cost of living.
This standard is currently £13.45 per hour across the UK and £14.80 in London.
Shareholder activist group ShareAction has called on M&S to bring its pay in line with the real living wage, saying it is “vital for workers’ livelihoods”.
Louise Eldridge, Good Works Manager at ShareAction, said: “As more people struggle to afford basic needs, it is worrying to see another major supermarket backing away from the only independent criteria that determines what people need to take home to cover their living costs, save for the future and enjoy their free time.
“This is vital for workers’ livelihoods and good for business, with all the proven benefits of reducing turnover and attracting better quality talent.
“We call on M&S and the wider industry to consider restoring full alignment with the real living wage in London and across the UK.”
In its store staff pay rise announcement last March, M&S said it had increased wages to be in line with the real living wage.
But the group said on Tuesday it had invested more than £350 million in staff wages over the past four years, representing an increase of more than 34 per cent.
The latest pay rise for store staff will cost more than £70 million and exceed inflation, it said.
M&S CEO Stuart Machin said: “This is a good cost and I’m delighted we can deliver this inflation-beating pay award alongside our leading benefits package.
“This investment reflects the central role our people play in reshaping M&S for growth.”
