But how will its store workers’ new salaries compare to those of their counterparts at other leading chains, including Tesco, Sainsbury’s, Asda, Aldi and Lidl?
Morrisons announced on Friday that it was set to pay all its store and manufacturing employees at least £10.20 an hour, which it said represented a minimum two per cent increase on their base rate and made it the highest-paying UK supermarket for store assistants.
The new deal is set to take effect in October 2022, subject to a ballot, and comes just 18 months after Morrisons announced a pay increase of around nine per cent.
The company said the latest rise, if approved, would mean that since 2014 the hourly pay rate for its customer assistants has soared from £6.83 to £10.20 – an increase of more than 40 per cent.
In addition, it said all employees would benefit from an unlimited 15 per cent staff discount and two 10 per cent family and friends discounts.
All Morrisons’ major rivals have announced pay rises over the last 12 months, including Tesco, Sainsbury’s, Asda, Aldi and Lidl. Here’s what they offer, and how it compares.
In April, Tesco announced it had reached an agreement with the trades union USDAW which included a ‘substantial’ new pay deal, increased access to extra hours and investment in training.
It said store assistants would see their hourly rates increase by 5.8 per cent to £10.10 from July 24, while delivery drivers and assistants would get £11 an hour.
The company also reealed it was extending its annual Colleague Clubcard discount allowance to £1,500, enabling workers to benefit more from the 10 per cent staff discount which rises to 15 per cent every payday weekend.
It added that the pay package would be reviewed again in 2023.
In January, Sainsbury’s announced it was increasing its basic hourly pay for all store workers outside London from £9.50 to £10. It said its groceries drivers would now get £11.50 per hour and Argos drivers would receive £11.It also said all Sainsbury’s, Argos and Habitat colleagues would receive a 10 per cent discount on their shopping across all three brands, with the discount at Sainsbury’s rising around pay day to 15 per cent.
In April, Asda announced the hourly rate for its shop floor workers would increase to £10.10 from July.
Aldi revealed last year that its store assistants would receive £10.10 an hour nationally, and £11.55 for those within the M25, from February 2022.
It said at the time that it remained the only UK supermarket to offer paid breaks, which it said for the average worker was worth £750 annually.
In November last year, Lidl announced that entry level wages would rise from £9.50 an hour to £10.10 outside London and to £11.30 within the M25 from March 2022, with store assistants earning up to £11.40 and £12.25 respectively, depending on length of service.
It said the pay increase complemented other benefits like enhanced holiday entitlement and development opportunities, and its 10 per cent staff discount.
The John Lewis Partnership, which also operates Waitrose supermarkets, announced in March that it was reinstating its staff bonus and would be giving them three per cent this year – equivalent to one-and-a-half weeks’ pay.
It also said it would pay all employees at least the the independently verified living wage of £9.90 outside the capital, which it said amounted to a two per cent pay rise.