Around 65,000 employees at John Lewis are set to receive a substantial pay increase come April. The John Lewis Partnership, which includes department stores and Waitrose supermarkets, announced that shop floor wages will see a nearly 7% hike, amounting to about £1,600 annually for full-time staff. Notably, employees at the renowned retailer are referred to as partners due to the company’s unique employee ownership structure.
While the pay raise news is uplifting, there is uncertainty regarding the annual partner bonus for this year, as the last bonus was awarded in 2022. Jason Tarry, the chair of the partnership, expressed the organization’s commitment to granting a bonus at the earliest opportunity.
The decision on the bonus allocation is pending until March when the Board will deliberate on the matter. Under the leadership of former Tesco executive Mr. Tarry and managing director Peter Ruis, John Lewis has been striving to bounce back from recent financial setbacks.
The pay increase will benefit 99.6% of partners, totaling £108 million in additional earnings. Effective April 1, shop floor employees at John Lewis and Waitrose will see a 6.9% raise, with minimum hourly rates set to increase to £13.25 nationwide and £14.80 in stores within the M25 area.
For partners who acquire specialized skills and take on specific roles, hourly rates will rise to £14.31, reaching £15.98 within the M25 zone. The salary adjustments partly reflect the higher National Living Wage, which will climb by 4.1% to £12.71 per hour for workers aged 21 and above starting in April.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the significance of this £108 million investment in boosting partners’ regular income. This pay rise underscores the organization’s ongoing dedication to partner compensation, aligning with past practices.
Furthermore, besides the base pay, Partnership employees enjoy various perks, including discounts at John Lewis and Waitrose, up to a 12% pension contribution, subsidized personal development activities, discounted hotel rates, and a comprehensive health and wellness package featuring options like physiotherapy and counseling referrals.
In September, the Partnership reported a significant increase in losses for the six months ending in July, reaching £88 million. The surge in losses was attributed to restructuring expenses and additional tax and regulatory fees. The group manages 36 department stores and over 300 Waitrose supermarkets.