Prime Minister Theresa May has called on retailers to provide competitive wages and bonus schemes for staff amid a furious row over workers’ contracts at Sainsbury’s.
The supermarket is moving staff on to new contracts in September. Its plans have proved controversial because it is scrapping a number of staff benefits.
While Sainsbury’s is increasing basic pay, it is ending paid breaks and premium pay on Sunday for thousands of staff.
As part of a campaign spearheaded by Labour’s Siobhain McDonagh, more than 100 MPs wrote to the prime minister to complain about Sainsbury’s eroding staff benefits.
Mrs May said in reply that she would not intervene, arguing that the UK Government should not “dictate how managers run businesses”.
But she added: “The government believes that it is essential for employers to ensure that their reward packages are competitive, in order to retain and develop their staff.
“This includes the payment of wages above the statutory minima and the provision of additional benefits where this is affordable.”
Sainsbury’s had made concessions following talks with staff, including higher pay for drivers and staff on unsociable hours.
Ms McDonagh is now calling on MPs to join her in delivering an online petition to Sainsbury’s headquarters in London on June 26.
Several large retailers have modified staff contracts in a bid to save money following the introduction of the National Living Wage.
Waitrose, Morrisons, John Lewis, Marks & Spencer and B&Q have all faced criticism over new contracts, with many cutting paid breaks as part of the changes.
Meanwhile, Tesco has reported its 10th consecutive quarter of sales growth.
Like-for-like sales were up 1.8% for the 13 weeks to May 26, with comparable sales rising by 3.5% in the UK and Ireland.
Tesco said it had launched thousands of new own-brand products and was investing in bringing down prices, especially for its fresh food brands.
Elsewhere, Iceland said profits dipped last year as it cut prices and was hit by supply chain issues over the critical Christmas trading period. The group saw adjusted earnings slip 1.8% to £157.1 million in the year to March 31 but sales rose 8% to £3 billion.