In the latest bid to help employees with the soaring cost of living and to retain staff, Tesco and Sainsbury have increased wages
A woman pushes a shopping cart at a Tesco supermarket in Hatfield, Britain. Picture: REUTERS/PETER CZIBORRA
The moves show how British companies are being forced to respond to the cost-of-living crisis, which is pinching consumer budgets as the prices of fuel, energy and food soar. UK supermarket employees are among those worst-affected, with an increasing number using food banks, according to the Independent Food Aid Network.
Consumer prices rose 6.2% in February, and the central bank has warned inflation could hit double digits by the end of the year, fuelled by a surge in energy, food and clothing prices. Pay growth eased during the coronavirus lockdowns in 2020 and then surged as much as 8.8% in the middle of last year as the economy reopened and companies struggled to find workers.
Tesco is increasing the hourly rate for shop and warehouse workers to £10.10 from July 24, with staff in London receiving £10.78 an hour. Truck drivers, who are in strong demand as online grocer ordering takes off, will receive £11 hourly. The company said that while it normally agrees to two-year deals with union workers, it will review wages again next year because of the uncertainty in the economy.
Sainsbury was already facing a demand from more than 100 shareholders including HSBC to pay the higher living wage to all its employees. The resolution was to be voted on at the annual meeting later this year.
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