Sainsbury’s has announced it will be investing £100m into pay increases for staff, with a basic hourly pay of at least £10.
Basic hourly pay for Sainsbury’s and Argos store workers will rise to £11.05 for inner London and £10.50 in outer London, the supermarket revealed on Friday.
The company said it was also increasing pay for drivers, with its online groceries drivers to receive £11.50 per hour, with a basic rate of £10 per hour plus an extra £1.50 per hour.
Argos Fast Track Delivery drivers are now to receive £11 per hour based on a base rate of £10 per hour plus an extra £1, up from 75p.
It comes as retailers across the country struggled to recruit drivers last year, amid staff shortages after Covid and Brexit.
The supermarket said the 5.3 per cent annual increase to wages meant that staff hourly pay had increased 25 per cent over the past five years.
The pay hikes will come into effect from Sunday 6 March 2022 with the first pay day being 8 April.
In another show of thanks for their hard work during the pandemic, the supermarket said staff would receive a 10 per cent discount on shopping across the Sainsbury’s, Argos and Habitat brands.
Retail trade union the Union of Shop, Distributive and Allied Workers (Usdaw) welcomed the increases after lobbying for workers to receive higher wages.
Dave Gill, Usdaw national officer said: “For some time we have been in discussions with Sainsbury’s about increasing retail staff pay to at least £10 an hour, as we call for in our New Deal for Workers campaign. So I am pleased that Sainsbury’s are able to implement this new hourly rate, a rise that achieves that goal and takes most staff beyond the real living wage.
“This increase is one of the leading rates of the major supermarkets. It is a big step forward and shows that the company is prepared to invest in the staff to help grow the business.”