Wilko will curb staff payment premiums for Sundays and bank holidays.
According to evidence seen by The Daily Mail, Wilko is scrapping its current premiums, which entitle staff to time-and-a-half or double time when working Sundays, bank holidays, night shifts, unsocial hours, or if they are working over 39 hours a week.
This comes in response to a pincer effect of the upcoming National Living Wage increase and competition from rivals such as B&M, Poundland, and discounters Aldi and Lidl, which have left Wilko with a bleak outlook. Wilko‘s profits plunged in its last financial year, and as the National Living Wage threatens to alter the retail landscape the retailer is moving to make sacrifices.
In an attempt to offset this loss of employee earnings, Wilko is raising its basic pay rate for over 25s to £7.65, a rate higher than the minimum £7.20 that the National Living Wage will impose. Staff between 21 and 24 years of age will earn £7.20 and hour, and under 21s £6.85
“Some of the increases will be offset by the removal of the majority of our current premium payments,” said the document viewed by The Daily Mail.
“The remaining cost will reduce profits, demonstrating our commitment to investing in team members‘ pay and benefits.”