BrewDog has announced it will no longer pay the real living wage to new employees in a bid to get profits back on track.
The craft beer giant released a letter to staff, which has been posted by the Unite Hospitality union on X, stating that new bar staff will now be hired on the government’s Statutory National Living wage (£10.42 an hour), instead of the voluntary Real Living Wage like before.
The letter states that even with a “strong performance over Christmas, as a wider business there is no hiding from the fact that in 2023 we made a trading loss.“
According to figures, the firm said the move was “necessary” after making a £24m operating loss last year, despite a “bumper” festive period.
The Punk IPA brewer previously spoke of its pride at offering the Real Living Wage to staff since 2015. But it’s not just new staff members being impacted.
BrewDog confirmed that all existing staff members will no longer earn the real living wage from April 1st. Although current employees members will see a slight increase, from £10.90 to £11.44 outside of London and remain at £11.95 for employees London, this rise is not in line inflation.
At present, the Real Living Wage stands at £12 outside of London, and £13.15 inside of London, which means employees will fall short.
BrewDog was previously one of the 14,000 UK businesses who offered employees the Real Living Wage. This figure is calculated on the cost of living such as the average price of household goods and services, whereas the National Living Wage is based on a percentage of median earnings.
The failure to increase pay in line with the Real Living Wage has caused outrage among employees and the public. Meanwhile, former staff have criticised the business for ‘abandoning its principes.’
Daryl Smith from the Employment team at Oakwood Solicitors said:
“I am left extremely disappointed by BrewDog’s decision to abandon paying new members of staff the real Living Wage and while the company may claim the move is ‘necessary’ as part of an effort to return to profitability, there seems to be a complete ignorance of the current financial crisis that many employees in the UK face right now.
“In a blog post from 2019, the company told of its pride at being a real Living Wage employer which, prior to this move, it had been doing since 2015. To withdraw it now, during one of the most difficult cost of living crisis in a generation, demonstrates hypocrisy of the highest order and is a simply outrageous decision which I’m sure will be challenged vehemently.“
Bryan Simpson, hospitality organiser of Unite, said:
“To withdraw the real living wage now, during the most acute cost of living crisis in a generation is outrageous.
“We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions.”
Further Employment Law reading
Employment terms and conditions and breach of contract – Oakwood Solicitors
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BrewDog has announced it will no longer pay the real living wage to new employees in a bid to get profits back on track. The craft beer giant released a letter to staff, which has been posted by the Unite Hospitality union on X, stating that new bar staff will now be hired on…
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