// Frasers Group pledges to not reducing the majority of its workers’ salaries for May
// Founder Mike Ashley said the group dealt with demand thanks to warehouse workers
// Frasers Group has around 29,400 staff across six business segments
Mike Ashley’s Frasers Group is reportedly keeping salary levels at 100 per cent in May for the majority of its employees.
The company, which comprises of retail chains Sports Direct, House of Fraser, Flannels, Jack Wills, Evans Cycles and Lillywhites, has furloughed the vast majority of its staff under the government’s coronavirus job retention scheme.
Frasers Group had initially aimed to guarantee 100 per cent of employees’ full wages until April 30, above the 80 per cent provided by the government’s furlough scheme.
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Workers were then informed that from May 1, 90 per cent of their basic salaries would be paid, with the additional 10 per cent being paid by Frasers Group.
However, today Frasers Group said payments to all directly0engaged employees, including those on casual contracts, would remain at 100 per cent of normal salary levels for May.
Senior executive leaders, such as chief financial officer Chris Wootton, head of commercial Sean Nevitt, and the non-executive directors, will remain on a reduced annual salary capped at £40,000.
“Although the retail landscape remains uncertain, we now find ourselves with a little more clarity,” Ashley wrote in a letter to staff, as seen by Drapers.
“The Sunday before last, the government announced their plans to restart the economy, including their proposal for the phased reopening of retail stores.”
He added that the group may be able to begin opening stores from June 1, in line with the government’s guidance and in compliance with new social distancing and safety guidelines.
Frasers Grouo said it dealt with demand during lockdown thanks to its warehouse and logistics team.
As a result, Ashley said he would not implement any salary reductions for Frasers Group employees for May.
“Our people will receive their full expected salaries, as they did in April,” he wrote.
“This applies to both furloughed and non-furloughed employees.”