M&S defends its new inclusive salary structure

& Spencer has hit back at criticisms of its new pay deal for staff, which
removes the annual Christmas bonus and double-time payments for Sundays.

retailer came under fire for axeing the bonuses of 55,000 sales staff, after
its pre-tax profits grew by 11.5 per cent to £721.3m.

head of people proposition at M&S Denise Keating (above), said staff would
not lose out, as bonuses had been added to the hourly rate of pay instead.

basic salaries looked low because we paid a bonus once a year at Christmas. Now
we will be paying the same amount in 12 installments, instead of as a lump
sum," she said.

move was part of a pay review, which saw staff get a 3 per cent increase,
bringing the hourly rate up from £4.68 to £4.82. New recruits will now receive
£5.18 an hour with the bonus payments, but existing staff will stay on the same
deal until the end of the year.

addition, workers will also receive an extra two days annual leave after two
years’ service.

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