M&S to go ahead with pay changes following campaign

Marks & Spencer is set to go ahead with its proposed changes to pay, premium and pension - with “significantly improved financial support” for staff who may be negatively effected following an online campaign launched against M&S’s proposal.

Labour MP Siobhain McDonagh presented a box with over 90,000 signatures against M&S proposed pay cut on Thursday to staff at the retailers head office in Marble Arch, London. The original pay scheme presented by M&S to employees would have reportedly negatively effected 11,000 store members and see 2,700 employees lose over 1,000 pounds per year. M&S argued the proposed pay changes announced ahead of the introduction of the National Living Wage, that would see Sunday and bank holiday pay scrapped and affect workers pensions, would be beneficial for up to 90 percent of its entire staff. Now Marks & Spencer reveals it had come to an agreement following the petition hand over on a number of “key issues” concerning proposed pay, pension and premium changes.

M&S to introduce changes to pay, premiums and pension in spite of staff campaigning for better rates

Qualified Customer Assistants are set to receive a 14.7 percent pay increase to 8.50 pounds an hour (9.65 in the Greater London area) from April 2017, which is higher than the wage campaigned by the Living Wage Foundation, stated M&S. Section co-ordinators and Section Managers will also be given a pay rise. M&S will axe premium payments for Sunday and offer one standard payment for bank holidays. M&S noted the “vast majority of colleagues will receive higher pay as a result of the change, but has included an additional offer to ensure all staff members will either receive higher pay or be able to maintain their current pay.

Marks & Spencer is set to op up the pay for all employees receiving a lower total salary as a result of the changes to premium rates for the next two years. In addition, any member of staff who would still receive a lower pay compare to 2015/16 by 2019 will be given an additional top-up payment of 50 percent and be offered extra (optional) hours to compensate the remaining 50 percent. According to M&S, the vast majority of employees in this section would only need to work an additional 45 minutes a week to ensure their pay to equal to 2015/16 levels.

“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,” said Sacha Berendij, Retail Director for Marks & Spencer. “From April 2017 our people will be amongst the highest paid in UK retail and receive one of the best benefits packages. The changes will reward our people in a fair and consistent way, simplify and modernise our business and help us attract and retain the best talent so we can continue to provide great service for our customers.”

In regards to changes to pensions, active members of M&S’s Defined Benefit Scheme will no longer earn new benefits from April 2017 onwards and will be offered the chance to join M&S’s Defined Contribution plan. M&S has agreed to extend cash supplement support for employees affected by the changes from two to three years. The retail company will also maintain death-in-service benefit at four times salary for members of the Defined Benefit scheme which decide not to enrol in the Defined Contribution plan. M&S noted that employees will only be eligible or the transition support if they agree to the changes laid out.

“On behalf of the Business Involvement Group, our elected employee representative body, we are satisfied that we have concluded a period of robust collective consultation where all views from across M&S have been strongly represented,” added John Dorrington, Chair of the Business Involvement Group. “In our view the business has listened carefully to all views and suggestions and as a result has made a number of key changes to the original proposals.”

The changes to pay, premiums and pensions are not expected to have a significant impact on underlying costs this year, but will result in a non-underlying charge for this financial year between 100 million pounds and 150 million pounds. M&S decision to go through with its proposed plan has not been positively embraced by all. In response to M&S decision to go ahead with its changes to pay, premium, and pension, Labour MP Siobhain McDonagh has issued the following statement:

Photos: Siobhain McDonagh, Facebook