John Lewis MD: Living wage could cause benefits restructure

Andy Street, John Lewis’ Managing Director, has hinted that the retailer may have to restructure its staff benefits if it is too adhere to George Osborne’s ‘national living wage.’  

The comments come as Starbucks, Sainsbury’s, and Ikea have all agreed to increase staff wages, and match – or surpass – the soon-to-be legal requirement. 

Speaking at the opening of its 45^th store in Birmingham, he says: “What it might lead to is us saying a greater proportion of our rewards to partners goes into base pay other than total benefits. That is up for debate. But will it lead to the scheme of bonus being changed? Categorically no.

“If, like us, you have got a rich benefit scheme with pensions and bonus – we are paying 15% of our payroll for pensions, 15% for business – it is obviously quite challenging.