Sainsbury's to raise pay to at least £11 per hour

Supermarket giant Sainsbury's is to raise pay to at least £11 per hour for 127,000 of its workers as cost of living pressures bite.

The supermarket has been in talks with shop workers' union Usdaw, which said the February pay rise will "make a significant difference to our members".

Sainsbury's, the largest supermarket so far to hike pay to £11, follows a similar move by rival Aldi.

Supermarkets are currently competing for workers in a tight jobs market.

Sainsbury's and Argos workers will get a bump in hourly pay from from £10.25 to £11.00 per hour and from £11.30 to £11.95 per hour in London.

The pay boost will cost the supermarket £185m, on top of £20m Sainsbury's agreed to in October for pay rises.

The supermarket chain will also extend a programme where store and depot workers can get free food on-shift by six months.

Sainsbury's chief executive Simon Roberts said millions of households were finding life tough this winter and that after Christmas "budgets will be tighter than ever".

"As well as doing all we can to keep prices low for customers, it's our job to support our colleagues as they face rising costs," he said.

Usdaw national officer Dave Gill said: "With the cost of living continually rising, we have kept open our dialogue with Sainsbury's, and we are pleased the business has responded so positively."

German discounter Aldi, which has been grabbing market share from the largest supermarkets, is now the joint-fourth largest supermarket chain. It started paying workers at least £11 per hour from the beginning of January, and £12.45 within the M25.

Rival discounter Lidl pays £10.90 outside of London and £11.95 inside the M25.

By comparison, Asda pays staff £10.10 outside London, and £11.27 within London.

Waitrose pays a minimum of £10.30 an hour outside London, and £11.50 for workers in it.

This is the third time in a year that Sainsbury's has increased pay for its 127,000 lowest-paid workers.

All the big grocers have been upping pay amid a tight labour market and the cost of living crunch.

Retail workers are feeling the squeeze as much, if not more, than the shoppers they serve.

There's also a battle for staff. Sainsbury's knows it must stay competitive to retain and attract colleagues.

Aldi has already raised hourly pay to £11 an hour, effective from this month.

Staff wages are a huge cost for the biggest grocers as they employ vast numbers of people.

This big pay boost will add to the pressure of finding savings elsewhere in the business.

Supermarkets have been battling it out in a bid to attract staff for months, with many vacancies being posted since coronavirus restrictions started to ease.

While retail job vacancies have fallen from 169,000 this time last year, between September and November there were still 148,000 vacancies, compared with 132,000 in the same period in 2019.

Workers across many sectors have been battling with employers over pay, terms and conditions in recent months.

Rail workers, Royal Mail postal workers, nurses and ambulance workers are among the groups that have been taking industrial action, with some unions warning that months of disruption could be ahead.