- 7,300 co-workers to receive a pay rise on April 1
- Retailer also becomes a Principal Partner of the Living Wage Foundation
On Friday 1 April 2016, IKEA UK will introduce a Living Wage – as defined by the Living Wage Foundation – for all of its co-workers.
6,100 co-workers will receive a pay rise to the Living Wage, set at £8.25 nationally and £9.40 in London, above the statutory National Living Wage and for co-workers of all ages.
This move is part of a wider transformation of basic co-worker conditions as IKEA looks to ensure that co-workers have the right level of pay, the right contract and an appropriate schedule. As part of this transformation, IKEA is also implementing a proportionate pay increase for a further 1,200 team leaders – representing an additional investment from the business into its workforce – as well as committing to giving all customer-facing co-workers one weekend off in four.
Pernille Hagild, Country HR Manager, IKEA UK said: “April 1st marks an exciting milestone for IKEA as we look to transform our basic co-worker conditions for the better. Introducing the Living Wage is an investment we are incredibly proud to be making, particularly as our co-workers have told us about the real impacts and positive benefits this will have on their lives. For example, co-workers have said that they will be able to save for a mortgage, help pay for their children’s university fees or extra-curricular school activities, pay the household bills and be able to travel and enjoy life more.
“Implementing the Living Wage Foundation’s recommended rates of pay is not only the right thing to do by our co-workers and our values but it also makes good business sense. As we look to grow in the UK, motivating and retaining our co-workers, as well as attracting new co-workers, becomes increasingly important. We also believe that a team with good compensation and working conditions is in a better position to provide a great experience to our customers.”
In addition to becoming an accredited Living Wage employer, IKEA has also today become a Principal Partner to the Living Wage Foundation. This partnership will enable IKEA to play a key role in on-going discussions about the living conditions of people in the UK, as well as to share its own experiences in implementing the Living Wage with other businesses in order to encourage further uptake of the Living Wage.
Katherine Chapman, Director, Living Wage Foundation, said: “We are delighted to welcome IKEA, one of the UK’s major retailers, as an accredited Living Wage employer and Principal Partner. Its decision to pay the Living Wage demonstrates that whilst it’s not always an easy choice for business to make, it is the right choice, and has clear benefits for employers in increasing productivity and providing a better quality of life for employees. IKEA’s accreditation sends out a clear message to the retail sector that businesses that can, should pay the higher voluntary rate, and we hope that its leadership will encourage others in the sector to consider how they can implement the Living Wage across their organisations.”