M&S to go ahead with proposed pay, announces increased financial support

By

Barbara Santamaria

Published
Sep 2, 2016

Marks and Spencer announced on Friday it plans to go ahead with the proposed pay, premiums and pension changes after a consultation with its national employee representative group (Business Involvement Group).

The announcement comes a day after a group of campaigners demonstrated on Oxford Street calling for the pay cuts to be scrapped. The plan will see pay rates for around 7,000 staff working on Sunday and bank holidays reduced, while 11,000 employees will have their pensions affected by the new scheme.

The UK retailer said it will go ahead with the changes, but it will provide increased financial support for staffers who are affected.

Sacha Berendji, Marks & Spencer Retail Director said: “We’ve listened to our colleagues, acted on their feedback and are pleased that we’ve reached an outcome that gives enhanced support for our colleagues as well as making necessary changes to our business. From April 2017 our people will be amongst the highest paid in UK retail and receive one of the best benefits packages.”

Under the new pay structure, Customer Assistants will get a 14.7% rise to £8.50 an hour (£9.65 in Greater London) from April 2017 and there will also be pay rises for Section Co-Ordinators and Section Managers.

Premium payments will be simplified and made consistent across UK retail employees, including removing premium payments for Sunday working and moving to one standard payment for Bank Holidays. 

For two years, pay will be topped up to 2015/16 levels for any colleague that would receive lower total pay as a result of the Sunday and bank holiday pay changes. If in 2019/20 employees are still receiving a lower total pay, they will be given an additional top up payment of 50% of their reduction and be offered guaranteed extra hours to make up the remaining amount.

Additional top up payments and guaranteed hours will be offered annually in subsequent years until the colleagues’ pay reaches its 2015/16 levels.

The proposed pension changes will also go ahead with active members of the M&S Defined Benefit scheme no longer earning new benefits in that scheme from April 2017 and being offered the chance to join the company’s Defined Contribution plan. 

Marks and Spencer has agreed to extend the cash supplement support for affected colleagues from two to three years and maintain the death-in-service benefit at four times salary for members of the Defined Benefit scheme that choose not to enrol in the Defined Contribution plan.