German-owned discount supermarket group Aldi UK said on Monday it was awarding its store staff a second pay rise this year in another indication of Britain's tight labour market.
Many UK employers are offering higher pay deals in the face of staff shortages and accelerating prices. The Bank of England is watching settlements closely as it weighs the risk that a jump in inflation to a 40-year high of 9.4% becomes embedded in the economy.
Aldi UK, which trades from 970 stores across Britain, said that from September about 26,000 store assistants would receive a minimum of £10.50 ($12.57) an hour nationally and £11.95 in London - rises of 4% and 3.5% respectively.
Rates had gone up from £9.55 to £10.10 nationally and from £11.07 to £11.55 in London in February.
Aldi is Britain's fifth-largest supermarket group after market leader Tesco, Sainsbury's, Asda and Morrisons. All have raised pay this year.
Last week, Aldi UK announced plans to create 1,000 logistics jobs in the United Kingdom over the next 12 months.
It will include both full-time and part-time positions, with salaries of up to £19.80 per hour, the company noted.
The initiative is part of the retailer's nationwide expansion drive, with the supermarket expected to create 2,000 permanent roles across the UK this year.
Kelly Stokes, recruitment director at Aldi UK, said, “As we continue to grow and make Aldi accessible to even more shoppers, we need more amazing colleagues at our distribution sites across the country to make that possible.
“As well as market-leading pay and benefits, being an Aldi colleague means a great working environment and real opportunities to progress within the business. We look forward to welcoming even more great people to our distribution centres to become a part of our success.”
News by Reuters, additional reporting by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.