Morrisons faced a backlash today after it emerged a partner using its brand is paying staff the minimum wage despite the supermarket’s much publicised guarantee that all employees will earn at least £10 an hour.
After becoming the UK’s first supermarket chain to pledge that staff will not be paid below the minimum wage threshold, the Bradford-based chain was widely praised.
But employees at Morrisons Daily convenience stores were left furious after learning they would not be covered by the guarantee, with some still on the minimum wage of £8.21.
MailOnline received a reply from one of the victims. We wear Morrisons uniform! Morrisons Products! Morrisons Rules apply to you. But I am able to confirm that I earn the minimum wage.
‘All this after we’ve worked extremely hard throughout the pandemic with minimal staff, and extra jobs constantly piled onto us.’
Employees at Morrisons Daily convenience stores are on the minimum wage despite Morrisons supermarket staff being guaranteed at least £10 an hour
McColl’s convenience store chain manages Morrisons Daily. They plan to open 350 new branches by November 2022 under this format.
David Potts, chief executive of Morrisons, boasted that the partnership would ‘extend our brand reach’ and build a wider, stronger Morrisons store for customers’ in order to achieve capital-light, profitable growth.
Ian Lavery is Labour MP for Wansbeck in the north east of England, where dozens of new branches are planned.
He urged Morrisons to ensure McColl’s met its £10 per hour minimum, telling MailOnline: ‘Responsible and caring employers should always seek to reward their staff with the best wages terms and conditions.
“Morrisons” main store employees earn more than the National minimum wage. Any franchised subsidiary or parent company that uses its brand must pay the same.
“Unfortunately, many poor employers try to con the workforce into working for lower wages and more dangerous work practices. Let’s pray that this is not an example.
An employee of Morrisons Daily requested anonymity because he was told by his supervisors not to talk to the media about Morrisons Daily or to post any information online.
Morrisons was brought out by a US private equity firm last month – putting it in foreign ownership for the first time in its 122-year history.
David Potts, chief executive of Morrisons, boasted that the McColl’s partnership will “extend our reach”
Its 497 UK stores will now be sold to New York-based Clayton, Dubilier & Rice following a four-month bidding war.
The deal – passed by a majority of 99.2 per cent – prompted outrage from MPs and senior City figures, who warned the brand could be ‘scrapped for parts’, hurting suppliers, customers and its 111,000-strong UK workforce.
The new owners insist that they will be mindful of the history, culture, and operation model of the supermarket chain.
The deal allowed Mr Potts to cash-in £8.7million of shares, rising to £22million if the board honours long-term bonuses.
This debt-fueled sale will increase the company’s expenses, which makes it vulnerable to falling performance or rising interest rates.
MailOnline’s requests to comment were not responded by McColl’s and Morrisons.