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Wednesday, 4 August 2021

How wages rise as companies compete for staff

 

John Lewis gives lorry drivers a £5,000 pay rise

Employee-owned partnership is the latest retailer to offer lorry drivers a £1,000 sign-on bonus amid chronic shortages

John Lewis
CREDIT: Alamy

John Lewis is the latest retailer to offer lorry drivers  a £1,000 sign-on bonus and higher salaries as the industry grapples with a chronic shortage of HGV drivers.

The partnership, which owns the Waitrose and John Lewis chains, said it will increase wages by up to £5,000 a year from Sunday.

The incentives are designed to ensure the retailer can continue to recruit drivers at “market competitive rates”.

The move comes days after similar decisions from Tesco, Marks & Spencer and Aldi.

Tesco has offered drivers a £1,000 joining bonus for those who join before 30 September, while Aldi is understood to have increased wages to maintain its position as the industry's highest payer. Meanwhile, Marks & Spencer offered a £2,000 joining bonus this week.

The Road Haulage Association has estimated there is a shortage of 100,000 HGV drivers mainly because EU workers have left the UK and the suspension of driver training and testing during the pandemic. Fewer people are taking it up as a profession, further exacerbating the problem.

The lack of drivers has caused disruption and delays across food supply chains, leading to product shortages in some cases. 

It has also disrupted waste management services in some areas, forcing councils to pause or cancel rubbish collection.

The Government recently granted a temporary extension of lorry drivers' working hours to help tackle the crisis.

Mark Robinson, director of supply chain at the John Lewis Partnership, said: “We’re responding quickly to the national driver shortage by ensuring our drivers are paid competitively and by investing in training for the future.

“These changes will mean that we can continue to serve our customers well and get them the products they need.”