John Lewis insists near 7% pay rise is not compensate workers for what could be another year when their bonus is scrapped
Around 65,000 workers at John Lewis are to get an inflation-busting pay rise in April.
The John Lewis Partnership, which spans department stores and Waitrose supermarkets, said shop floor pay will rise by nearly 7%, or the equivalent of £1,600 a year for a full time worker. Staff at the high street giant are known as partners because the business is owned by its employees.
However, there is no word yet on whether they will get a partner bonus this year – having not received one since 2022. Jason Tarry, the partnership’s chair, has said: “We are committed to paying a bonus as soon as we possibly can.”
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A spokesperson said the announcement of the pay rise was unrelated to the bonus, which will be decided by the Board in March. Under former Tesco bigwig Mr Tarry – and managing director Peter Ruis – the business has been attempting to revive its fortunes after suffering heavy losses in recent years.
John Lewis said 99.6% of its partners will benefit from a pay rise, worth a total of £108million. From April 1, those working on the shop floor across John Lewis and Waitrose will receive a 6.9% increase – with minimum hourly rates rising to £13.25 UK-wide, and £14.80 at stores within the M25.
Rates of pay increase to £14.31 per hour for partners who gain enhanced skills and take on specialist roles, rising to £15.98 within the M25. The increases are in part a reflection of the higher statutory National Living Wage from the start of April, when the rate for workers aged 21 and over will go up 4.1% to £12.71 an hour.
Helen Webb, chief people officer for the John Lewis Partnership, said: “Our Partners are the heartbeat of our business. This £108m investment is about putting more money into their pockets month-in, month-out. This pay growth demonstrates a sustained commitment to Partner pay, consistent with previous years.
“This ensures that the rewards for our Partners’ hard work are built into their monthly pay as we continue to invest in the future of the Partnership.”
In addition to the baseline pay, workers at Partnership also get discounts at John Lewis and Waitrose. The firm says it also offers up to a 12% pension contribution, discounted rates to its network of hotels across the UK, up to £275 towards subsidising personal development and leisure activities such as theatre and live events, subsidised meals, and a wide ranging health and wellbeing offer including options for self-referral to physiotherapy and counselling.
The Partnership announced in September that losses for the six months to the end of July nearly tripled to £88million. Bosses blamed a hit from restructuring costs as well as new tax and regulatory charges. The group operates 36 department stores and more than 300 Waitrose supermarkets.