The Co-op Group has announced a pay increase for frontline store workers to at least £12 per hour, in line with the Real Living Wage.
The society says the move marks its biggest ever investment into pay with an increase of over 20% in the last two years for frontline colleagues, “further strengthening Co-op’s commitment to invest in its lowest paid employees.
Matt Hood, MD Co-op Food, said: “Our store colleagues are the heart of our member-owned business and we truly value their dedication and hard work. We’re proud to continue to be aligned to the Real Living Wage, which makes Co-op one of the top food retailers in terms of pay.
“Co-op continues to operate in challenging environments and volatile markets, some of which we have only recently stabilised. However, we believe this investment in our colleagues is of paramount importance to recognise their outstanding commitment to serving our member-owners and shoppers in communities all across the UK.
“Additionally, we continue to offer a competitive package to all our colleagues compared to other retailers, including paid breaks, 30 percent own brand colleague discount and industry-leading leave policies.”
From 1 April, the rate of pay for the Group’s customer team members will increase from £10.90 to £12.00 per hour, representing a 10.1% increase on last year and a 21% increase since March 2022.
For customer team members working in London, the hourly rate will increase from £12.25 to £13.15. Co-op team leaders will also receive a 10.1% increase from £12.10 to £13.32 per hour.
Related: Co-op Group urges ten-point plan to tackle record levels of retail crime
The Group says the changes are part of its wider commitment to its colleagues. In 2022, it introduced an enhanced fertility policy to support individuals, partners and surrogates receiving and recovering from the physical and psychological effects of fertility treatment. It also introduced a dedicated menopause support guide for its managers to better support colleagues experiencing perimenopause and menopause.
Last year, the Group introduced a new compassionate leave policy, providing greater flexibility for paid leave for bereavement and giving managers the discretion to make the right decisions for colleagues for up to 10 days paid leave.
Jayne Allport, national officer at store workers union Usdaw, said: “We are pleased to have negotiated this significant pay rise, which is a big help for our members struggling in the ongoing cost of living crisis and recognises their important contribution to the success of the business.”