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Retailers feeling squeeze

John Lewis curbs perks to meet living wage costs

John LewisNew staff at John Lewis and Waitrose will have to wait longer to qualify for the annual bonus as a result of the National Living Wage.

Starters will undergo a three-months probation period before being eligible for the annual payout which last year was worth an average £1,584.

The move follows decisions by B&Q and Morrisons to cut staff perks, such as double pay on Sundays and bank holidays.

New staff at John Lewis and its supermarket chain Waitrose have been told that during the probationary they will be tested on their commitment to the company, their level of engagement with the culture and their productivity.

They will now be paid “in line with their contributions to creating value”, according to the annual report.

Chairman Sir Charlie Mayfield said: “You can only afford to pay someone more if the value of their contribution is better. What was okay at £7.20 an hour is not okay at £9.20 an hour.”



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