Sainsbury's and Argos retail workers are to be paid the same - £11.05 per hour - in outer London.
Following the pay review in January, which saw retail trade union Usdaw secure at least £10 per hour for Sainsbury’s and Argos shopworkers, the company and the union have been reviewing the current inner and outer London bandings and pay rates.
Dave Gill, Usdaw National Officer, said: “Following our ground-breaking pay deal in January we have been in discussion with the company to increase the pay rates of Argos colleagues in outer London.
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“I am pleased to confirm that there will be an increase to pay rates for all Argos hourly paid colleagues in outer London, to £11.05. This will mean that Sainsbury’s and Argos retail colleagues who work in both the inner and outer London bandings will receive £11.05 per hour.
“This rise is another step forward for the union’s New Deal for Workers campaign.”
In a statement, Sainsbury's said it has now become the first major supermarket to pay the Real Living Wage and London Living Wage to all Sainsbury’s and Argos store colleagues. It said that, from May 1, retail colleagues in outer London will see an increase in their base rate of pay from £10.50 per hour to £11.05.
Simon Roberts, CEO of Sainsbury’s, said: “Our strategy is about investing in what matters most for both customers and colleagues.
"We know times are tough for everyone. That’s why we were one of the first in the industry to pay over the Real Living Wage at £10 per hour and brought forward the announcement of our annual pay review to early January, as we wanted to help colleagues plan and manage the cost of living in the year ahead.
“We are proud to pay the Real Living Wage and the London Living Wage in inner London and we have been spending a lot of time considering how we can help our customers and our colleagues as the cost of living crisis intensifies.
"We are always looking at what more we can do and have therefore decided to increase pay rates for outer London to £11.05 so that Sainsbury’s and Argos retail colleagues are paid the Real Living Wage and London Living Wage from May.
“We will continue to listen to the views of all our stakeholders as we balance delivering for customers, colleagues, communities and shareholders.
"We are committed to paying above the National Minimum Wage and, when setting pay each year, will consider the Real Living Wage, London Living Wage, the National Living Wage, competitor pay and the financial performance of the business.”
Usdaw’s New Deal for Workers calls for a minimum wage of at least £10 per hour for all workers, minimum contract of 16 hours per week, for everyone who wants it, that reflects normal hours worked and a ban on zero-hour contracts.
They also call for better sick pay for all workers, from day one, at average earnings, and job security, with day one employment rights for unfair dismissal and redundancy.
