By Maryam Cockar

J Sainsbury PLC (SBRY.LN) on Thursday confirmed that it will increase its hourly pay rate for the majority of its employees following a consultation with its staff, but that it still intends to scrap bonuses and paid breaks.

The grocer announced the pay and contractual changes in March and has since consulted with more than 100 employees and their unions.

Sainsbury said the hourly rate will increase to GBP9.20 an hour from GBP8.00, an investment of GBP110 million that will give 121,000 store employees an average pay rise of 9.3%.

The pay increase and contractual changes of reducing 22 in-store roles to five and the removal of bonuses and paid breaks will come into effect in September.

From the consultation process, Sainsbury said it will also extended location pay to staff working in all outer London boroughs, increase unsociable hour premium payments, to GBP2.45 an hour from GBP2.20 and raise online driver payments to 75 pence an hour from 50 pence.

The company said it will review the hourly rate of pay again in March 2020.

Write to Maryam Cockar at maryam.cockar@dowjones.com

(END) Dow Jones Newswires

May 24, 2018 04:55 ET (08:55 GMT)

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