Sainsbury’s has just set out ambitious plans to transform the way its stores are run and its colleagues are rewarded.
At the heart of the proposals, Sainsbury’s has announced it will be investing over £100m in store colleagues this year, taking the base rate of pay from £8.00 to £9.20 per hour. For colleagues working in stores in Zones 1 and 2 of London, this will increase to £9.80 per hour.
This industry-leading investment in pay follows three consecutive years of giving eligible store colleagues a 4% pay increase in recognition of their hard work and dedication. This brings the total increase in base rate to 30%1 over the past four years. Sainsbury’s will fund the pay increase through ongoing cost savings within the business.
Sainsbury’s Retail and Operations Director, Simon Roberts, said, “The retail sector has never been more competitive and we know that our customers really value our colleagues and the excellent service they provide in our shops.
“Which is why we think it is so important to invest further in our colleagues so they feel rewarded and motivated to do the best possible job for our customers every day. We expect the best from our teams and that’s why we’re committing to a leading rate of pay. Great pay for great work.
“Together with our recent proposals to change our management structure in stores, we believe the proposed changes will set us up to run the best shops in the industry, delivering the best possible service for our customers.”
As part of the proposals to increase colleague pay significantly and simplify the business, Sainsbury’s is proposing a number of contractual changes for store colleagues, including:
• A new contract, with new pay rates for all 130,000 store colleagues, ensuring consistency and fairness across all stores, regardless of age or length of service
• Streamlined and broader roles, moving from 22 specific roles to five: Trading Assistant; Food Services Assistant; Online Assistant; GM & Clothing Assistant and Services Assistant
• Changes to premium payments so that they are fairer and consistent
• Changes to productivity, flexibility and attendance standards to ensure that colleagues are always in the right place at the right time for our customers
• Removal of the colleague bonus and paid breaks
A small proportion of colleagues may be adversely impacted by these proposals. To support these colleagues, Sainsbury’s plans to make top-up payments for 18 months to ensure that no colleague earns less than they do today during this time.
Every colleague will be offered the new contract. Consultation on the proposals begins today and will take place over the coming months. If the proposals are confirmed, colleagues will receive the new rate of pay from September 2018.