John Lewis expresses concerns over rising employment costs due to impending wage hikes.
- The head of distribution highlights potential impacts on business turnaround efforts.
- The National Living Wage will see a notable 6.7% rise in April.
- John Lewis employs a significant workforce of approximately 85,500 individuals.
- Leadership criticises recent government tax measures affecting businesses.
John Lewis has publicly expressed apprehension about the impending increase in the National Minimum Wage. The retailer anticipates that higher employment costs will pose challenges to their business recovery efforts. John Munnelly, the head of distribution, emphasized that accommodating these changes will be difficult, given that the company has a vast workforce of around 85,500 employees.
In April, significant alterations to wage structures are expected. The National Living Wage is set to rise by 6.7%, reaching £12.21 per hour. For younger employees aged 18 to 20, the National Minimum Wage will experience a substantial increase of 16%, raising it to £10 per hour. Munnelly stated, “We are. We’ve got to be honest. Everybody out there is worried about the National Minimum Wage and the Real Living Wage and being able to accommodate that.”
These changes come on the heels of a broader context of financial strain, as outlined by Nish Kankiwala, the chief executive of the John Lewis Partnership. Recently, Kankiwala described the government’s tax strategies as a “two-handed grab” on businesses, hinting at further pressures the company faces. Such fiscal policies are seen as compounding the difficulties brought about by the increased wage requirements.
John Lewis is navigating a complex landscape of rising wages and fiscal challenges, prompting concerns about its financial strategy.
