Ikea becomes first retailer to pledge living wage for UK workers
[LONDON] IKEA Group will next year begin paying its staff in Britain a living wage above the compulsory level set out by the government this month, the world's largest furniture retailer said on Monday.
In his first post-election budget, British finance minister George Osborne announced a compulsory living wage for workers aged over 25, starting at 7.20 pounds (S$15.38) an hour when it is introduced next April and rising to 9.35 pounds by 2020.
The privately owned Swedish company, known for its flat-pack, self-assembly furniture, said it would instead pay all of its UK workers the level set out annually by The Living Wage Foundation, making it the first national retailer to do so.
That will see all of its UK staff, including those under 25, paid a minimum of 7.85 pounds an hour from April 2016, with those in London paid at least 9.15 pounds an hour. IKEA said this would impact more than 50 per cent of its 9,000 workers. "This is a huge step for the British retail sector and we hope that many other businesses will follow the leadership IKEA is showing on the issue of basic pay," Rhys Moore, director of The Living Wage Foundation, said in a statement.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Jim Beam owner bets on canned vodka cocktails to double revenue
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Olam outbids Dreyfus’ sweetened deal for Australia’s Namoi, raises offer to A$0.66 per share
Cordlife served letter of demand, notice of claim from customers
IndoAgri appoints former EDB chairman Philip Yeo as chairman and lead independent director
GSK profit drops 23% in Q1 on higher costs