Supermarket locked in dispute with Usdaw over refusal to offer increases beyond national living wage
(Image: MEN)
Morrisons has told staff that substantial pay increases are off the table this year as the retailer grapples with mounting costs.
The Bradford-headquartered supermarket chain is embroiled in a dispute with Usdaw (Union of Shop, Distributive and Allied Workers) over its pay proposals. The union, representing approximately 45,000 Morrisons employees, has accused the company of refusing to provide any uplift beyond the statutory national living wage.
Currently, the national living wage, or minimum wage, stands at £12.21 per hour for workers aged 21 and above, with a scheduled 4.1% rise to £12.71 coming into effect in April. For those aged between 18 and 20, the minimum wage will climb by 8.5% to £10.85 per hour.
Morrisons has attributed its decision to stick to the statutory minimum to a series of financial headwinds, citing £200m in “unexpected” cost pressures, particularly changes to national insurance contributions.
The nation’s fifth-largest supermarket operator also pointed to intense rivalry in the sector, noting “strong competition for sales and market share”, alongside disruption caused by a cyber attack targeting its technology provider Blue Yonder towards the end of 2024.
A Morrisons spokesman defended the position, saying: “On top of this, over the last financial year, we’ve invested over £100m in colleague hourly pay, and with the national living wage increase in April 2026, we will invest a further £70m. Against this backdrop, we have to balance any further pay offers, with the overall performance, affordability and long-term stability of the business.
“We have not been able to present an offer to the Usdaw national committee at this time and the union has confirmed they will now follow the process and proceed with a ballot of their membership. It is Morrisons’ clear position that we want to continue the dialogue with Usdaw.”
Usdaw’s national officer Darren Matthews said: “It is a sad day when one of the largest retailers in the country is now a national living wage employer, particularly as they were once one of the highest paying of the supermarkets.
“We have to question whether this is the result of private equity taking over a family-run business.”
Mr Matthews added: “We are very disappointed that the company has not meaningfully engaged with Usdaw in trying to secure a fair pay deal for our members, who are core to the success of the business.
“We urge the company to change their stance and come back to the negotiating table.”
