Workplace Report (June 2021)

Bargaining news

IKEA commits to Living Wage

Unions have welcomed last month’s decision by retail giant IKEA to re-commit to paying workers at least the Living Wage Foundation (LWF) rate, increasing staff pay to at least £10.85 in London and £9.50 across the rest of the UK in time for the LWF’s implementation deadline of 1 May. This gives staff in London a 0.9% increase, while those outside the capital receive 2.15%.

The company came under fire in November after refusing to honour the 20 pence per hour increase announced by the LWF while still displaying a Living Wage Employer plaque on its sites. Both shopworkers’ union Usdaw and the GMB general union say they have been pushing for this outcome.

National officer Dave Gill said: “Usdaw has been in discussions with IKEA about them continuing to be a Living Wage employer and implementing the latest increase. So our members are pleased to hear today that the company has agreed to pay the new Living Wage from May. They remain one of a few retail employers who pay the real Living Wage.”

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