Retail giant Marks & Spencer has withdrawn its commitment to pay workers in line with the real living wage, despite announcing a pay increase for its 55,000 store employees.
From 1 April, the high street chain will boost wages for retail staff by at least 6.4 per cent, setting new rates at £13.41 an hour nationwide, or £14.74 per hour for those based in London.
These revised figures mean the retailer will offer rates above the national minimum wage, which is set to rise to £12.71 per hour for those aged 21 and over across the UK from the same date.
However, M&S's new pay structure no longer aligns with the real living wage, a voluntary benchmark calculated to reflect the true cost of living.
This standard is currently £13.45 an hour across the UK and £14.80 in London.
Shareholder activist group ShareAction has called on M&S to reinstate its pay in line with the real living wage, describing it as "vital for workers’ livelihoods".
Louise Eldridge, head of good work at ShareAction, said: “With more people struggling to cover basics, it’s worrying to see another major supermarket step back from the only independent benchmark on what people need to take home to meet the cost of living, save for the future, and enjoy their free time.
“This is vital for workers’ livelihoods and it’s good for business, with all kinds of proven benefits including reducing turnover and attracting higher quality talent.
“We’re urging M&S – and the wider sector – to consider restoring full alignment with the real living wage in London and across the UK.”
In last March’s store staff pay rise announcement, M&S said it had increased pay to be in line with the real living wage.
But the group said on Tuesday it had invested more than £350 million in staff pay over the past four years, equating to an increase of more than 34 per cent.
The latest pay rise for store staff will cost it more than £70 million and is higher than inflation, it said.
Stuart Machin, chief executive of M&S, said: “This is a good cost and I am pleased that we have been able to make this inflation-beating pay award, alongside our leading package of benefits.
“This investment reflects the central role our people play as we reshape M&S for growth.”
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