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Birmingham Post
Birmingham Post
Business
Hannah Baker

GMB Union slams Amazon pay offer as 'joke' as inflation drives record wage slump in UK

Workers union GMB has criticised Amazon over its pay offer for staff as wages continue to fall behind inflation.

GMB said the tech giant's 35p-an-hour raise for staff in the UK was a "joke" - and the company needed to "get real" on pay.

Last week, hundreds Amazon staff at warehouses in Bristol and Essex walked out in protest over the offer, which equates to around 3%. It is understood the starting salary for Amazon warehouse workers is £11.10 an hour. The pay deal currently on offer will see this rise to £11.45, but staff are asking for a £2-an-hour raise.

"A 35p hourly rise from a company that made billions during pandemic is a joke," Gary Smith, GMB's general secretary said on Tuesday (August 16).

The comments come as new figures show British workers saw their pay lag behind inflation at record levels over the past quarter. The Office for National Statistics (ONS) said regular pay, excluding bonuses, grew by 4.7% over the three months to June - up from analysts' predictions of 4.5%.

However, the increase is far below the inflation rate, which hit a record 40-year high of 9.4% in June. The Bank of England has warned this could rise to as much as 13% in October amid the energy crisis. UK household are coming under mounting pressure as they contend with surging energy bills, higher food prices and increased fuel costs.

"Today’s labour record-breaking real wage drop shows big businesses like Amazon must get real on pay," added Mr Smith. "The best way to get a proper pay rise is to join a trade union and GMB will keep fighting to make work better for our members all across the country."

A spokesperson for Amazon said: "Starting pay for Amazon employees will be increasing to a minimum of between £10.50 and £11.45 per hour, depending on location. This represents a 29% increase in the minimum hourly wage paid to Amazon associates since 2018.

"On top of this, employees are offered a comprehensive benefits package that includes private medical insurance, life assurance, income protection, subsidised meals, an employee discount and more, which combined are worth thousands of pounds annually, as well as a company pension plan.”

Amazon does not recognise trade unions in its UK warehouses, but has so far denied there will be any disciplinary action. In the US, workers at the tech giant voted in April to form a union in a bid to improve working conditions. GMB Union is seeking the right to represent workers in Britain.

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