IKEA to pay UK workers above the Living Wage in 2016
IKEA has announced that it will pay its UK workers above the new National Living Wage from 1 April 2016.
Workers employed by IKEA across the UK will receive a minimum of £7.85 per hour and £9.15 per hour within London.
Gillian Drakeford, IKEA UK and Ireland country manager said: “As a values-driven organisation, we are guided by our vision to create a better everyday life for the many people, which of course includes our co-workers. We believe our people are the inner strength of our company, so it is only right to ensure we provide a meaningful wage that supports the cost of living.
“Introducing the Living Wage is not only the right thing to do for our co-workers, but it also makes good business sense. This is a long-term investment in our people based on our values and our belief that a team with good compensation and working conditions is in a position to provide a great experience to our customers.”
In his budget earlier this month, Chancellor George Osborne announced a new compulsory living wage of £7.20 an hour from 2016, with the rate rising to £9 an hour by 2020.
Rhys Moore, director of The Living Wage Foundation said: “We are delighted with this momentous announcement that IKEA will be accrediting as a Living Wage employer. This is a historic moment in the life of the Living Wage movement, as IKEA become the first national retailer to announce their commitment to the Living Wage and they will reward all their staff with an hourly rate of pay that covers the cost of living. 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.”
In 2013, IKEA introduced its One IKEA Bonus programme which involves all workers receiving a performance-related bonus. Other initiatives have included the Tack! loyalty programme, which rewards workers who have been with IKEA for more than five years with an annual contribution to their individual pension plans.
