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Retail

REWE Group To Raise Wages, Extend Inflation Compensation Discount

By Dayeeta Das
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REWE Group To Raise Wages, Extend Inflation Compensation Discount

REWE Group has announced a voluntary raise in wages, which will see employees in its retail division receiving 5.3% more money per month from October onwards.

Employees in its wholesale unit will receive a raise of 5.1%.

The management has taken this decision as employees of REWE and Penny Markt GmbH as well as Lekkerland and toom Baumarkt have been waiting for an agreement in the collective bargaining dispute for almost half a year, the German retailer noted.

The percentages reflected in the wage hike correspond to the current levels of employer offers for 2023 in the retail and wholesale sectors, and also to the respective recommendations of the trade associations.

The company added that it will implement the collective agreement in full later, and credit the amount already paid out through the advance increase.

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Inflation Compensation Discount

REWE Group is also extending the inflation compensation discount for employees for a further three months until 31 December 2023.

The initiative will allow employees to avail of a 10% discount on food purchases at REWE and Penny stores.

It will provide additional financial relief to its employees in times of inflation-related increases in the cost of living.

Sustainability-Linked Bond

Recently, REWE Group placed a sustainability-linked bond (SLB) issue, with the repayment amount linked to sustainability goals achieved by REWE and Penny.

Telerik Schischmanow, CFO of the REWE Group, said, "Commitment to sustainability is increasingly becoming an economic factor. We clearly see that investors and capital market partners have clear expectations here and view this commitment in a similar way to other key figures such as sales and earnings.

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