John Lewis is apprehensive about the forthcoming rise in employment costs due to the national minimum wage increase.
- The company’s distribution head, John Munnelly, highlights the challenges these increased labor costs pose to the business.
- The National Living Wage is set to increase by 6.7%, impacting workers aged 18-20 significantly by 16%.
- John Lewis employs around 85,500 workers potentially affected by these wage changes.
- The CEO refers to the government’s taxation strategy as a significant challenge for businesses.
John Lewis has voiced its concerns over the rising employment costs it faces with the upcoming increase in the national minimum wage. According to John Munnelly, the head of distribution, these changes weigh heavily on the company’s efforts to improve its financial standing. By speaking to The Telegraph, Munnelly expressed his worries about accommodating this increase.
The National Living Wage is due to rise by 6.7% to £12.21 per hour in April, while wages for those aged 18 to 20 will see a 16% increase to £10 per hour. This significant hike presents a pressing issue for John Lewis as it attempts to manage its labor costs effectively while maintaining its commitment to its workforce of approximately 85,500 employees.
In discussing the broader economic challenges, John Kankiwala, the CEO of John Lewis Partnership, noted the government’s taxation actions, describing them as a “two-handed grab” on businesses. This reflects the growing difficulty companies face in balancing fiscal responsibilities with operational costs.
The increase in wages, while beneficial for employees, poses a challenge for employers juggling financial recovery efforts. Keeping costs under control while ensuring competitive pay remains a delicate balancing act for John Lewis and similar companies.
John Lewis faces a challenging balancing act as it navigates increased wage costs amidst economic pressures.
