Introducing a nationwide rate for the Living Wage is “ludicrous”, former Sainsbury’s chief executive Justin King has claimed. He claims that the National Living Wage will “destroy jobs”.
The living wage will come into force in April 2016 and set a new minimum pay level of £7.20 an hour for workers aged 25 and over.
Here at the IMM we are wholly against any increase in the so called Living Wage until there is clear evidence that people not receiving this amount are actually dying.
Mr King, is a well respected Thought Leader at the IMM, having come to prominence on joining Sainsbury’s when he immediately authorised the removal of the Colleague Christmas Bonus award of £100. The removal of the bonus was a contentious issue, given its consistent payment for 25 years. The money saved allowed him to pay himself a £500,000 bonus that week.
Members should note that IMM guidance is that bonuses are for senior management only as they are the wealth creators whereas the workers should be grateful to be employed. A day off on Xmas day for non-essential jobs should be bonus enough.
King’s annual salary at Sainsbury’s was £900,000, coupled with a bonus package between £3-£6million annually, a clear demonstration of his immense capability and capacity for self worth. And this was supported by his wily decision to jump ship just before Sainsbury’s share price collapsed.
His comments come in the same week that Sainsbury’s announced that, from 30 August, its 137,000 shop-floor staff, including workers under 25, will see their standard rate of pay rise 4% to £7.36 an hour. (Mr King earned £7.36 in 5.2 seconds when he was in charge)
The IMM will be writing to Sainsbury’s about this pay award and the precedents it may set. Currently our Institute purchases pomegranates and Manchego cheese from this store for our Directors’ lunches and until we receive a satisfactory explanation from the company we will put this under review.