Morrisons has announced a new pay deal for staff which says it will guarantee payment of at least £10 an hour for all workers.
The retailer said it will be the first UK supermarket group to secure workers a £10 minimum rate when the pay increase starts in April this year.
'Significant' pay increase
The new payment policy will mark a “significant” pay increase for almost 96,000 staff members, the supermarket has said.
The majority of workers who will move up to the new minimum hourly rate, which is subject to a ballot vote on 27 January, will receive a nine per cent increase in their pay.
At the moment, Morrisons has a minimum hourly pay rate of £9.20 per hour.
The rise in hourly pay will primarily be funded by investment into payroll, but around a quarter of the increase will be funded by changes to its bonus payouts.
Staff told the retailer that they would prefer to have a guaranteed amount in their hourly rate and receive it more regularly, instead of the current bonus scheme.
David Potts, Chief Executive officer at Morrisons, said: “It’s great to be able to say that in the UK from April this year, if you work at Morrisons supermarkets, you will earn at least £10 an hour.
“It’s a symbolic and important milestone that represents another step in rewarding the incredibly important work that our colleagues do up and down the country.
“Over the last year we have seen renewed and widespread appreciation in the UK for our colleagues who have had an incredibly tough 2020, working tirelessly so Britain could eat well and shop safely throughout the pandemic.
“Morrisons colleagues have earned their status as key workers, and this pay increase, many times over.”
Leading rate of major supermarkets
The new rate of pay is now the leading rate of the major supermarkets, according to Joanne McGuiness, Union of Shop, Distributive and Allied Workers (USDAW) national officer.
The rate, which is paid hourly and removes the uncertainty of a bonus payment, has been praised by USDAW, as it shows that Morrisons is prepared to invest in its staff.
It also marks a positive change for food retail staff, who have worked throughout the pandemic in difficult circumstances, McGuinness added.
Morrisons has also confirmed that there will be a London weighting to the new hourly pay. This means that rates for inner London workers will rise by 85p per hour, while outer London workers will see their pay increase by 60p per hour.