Lidl has announced that it will become the first major nationwide employer to commit to paying the living wage of €11.50 per hour. Staff in the four Wicklow stores will benefit from this decision. The move will benefit the 20% of staff currently earning below this rate as all other staff working in Lidl already earn in excess of the living wage. This measure will be introduced from November 1 and is 30% higher than the current minimum wage of €8.65.
The living wage is an independently assessed and measured rate of income considered necessary to have a socially acceptable standard of living. Currently employees who commence working with Lidl at Store Assistant and Warehouse Operative levels in 143 stores and three Regional Distribution Centres across the country start on €10.50 per hour. Now all staff will earn a minimum of €11.50, rising to €13 per hour incrementally within two years.
The commitment to paying the living wage is part of a number of initiatives Lidl has introduced in recent years to build a better workplace for all its employees. Lidl continues to share the success it has enjoyed in recent years with all employees it steadily grows market share in Ireland. During the summer Lidl launched the country’s largest company-wide health check initiative to provide cardiac screening for all 3,800 employees in association with Laya Healthcare.
Announcing the commitment to the living wage, John Paul Scally, Managing Director, Lidl Ireland said, “We are delighted to be the first major nationwide employer to champion the living wage in Ireland. Staff in our four stores in Wicklow will benefit from the increase. Already 80% of our team earn in excess of the living wage, however it is important for us to ensure that those whose hourly pay falls below €11.50 benefit from a substantial increase. This would bring them to a level that is more reflective of enjoying a better standard of living.
“At Lidl, we are in a fortunate position that the last few years have seen our business go from strength to strength in a difficult economic situation. Key to this has been the dedication and commitment shown by our team so for us this move is a way of recognising that commitment and investing in future proofing our business. From our perspective, attracting and retaining the best employees will mean we’ll have an even better proposition for our customers which will help us continue to grow market share as we build a bigger business more deeply rooted in communities across the country.
“Even before today’s announcement we paid market leading rates so the commitment will ensure we continue to be a leading employer in the retail sector. It is not just the hourly rate that makes Lidl an attractive place to work. We also have a range of benefits such as paid maternity and paternity leave, health screening and fantastic opportunities for training, development and career progression. Indeed 43% of our current store management commenced their careers as Store Assistants.
“While this move will require an investment on our part we also want to reassure our one million plus weekly customers that it will not lead to price increases. Customers can remain confident that they will still get the highest quality products cheaper than our competitors.”
Welcoming Lidl’s commitment to introduce the living wage, Tánaiste and Minister for Social Protection, Joan Burton TD said, “I congratulate Lidl on its commitment to introduce the living wage to all its staff. While I understand that the vast majority of Lidl workers currently earn in excess of the living wage, more than 700 employees will be getting a pay rise as a result of this move. This is also an important statement of support from a large employer to the voluntary living wage campaign, which I and my colleague Minister Ged Nash have been driving. As our economic recovery continues, with 1,300 jobs being created weekly, this is the right time for employers to follow the lead of Lidl, and others, and commit to sharing the benefits of the recovery with their staff through paying a living wage.”
Minister for Business and Employment Ged Nash TD said, “Just one week on from my forum on the living wage in Dublin Castle, I am delighted that an employer of the scale and nationwide reach of Lidl has pledged to introduce the living wage from November 1. Research in other countries tells us that where the living wage rate is paid, employees, businesses and the State benefits. There is real momentum and energy behind the campaign and today’s announcement by Lidl represents a significant milestone. I would encourage all employers who can to actively consider the benefits for their workforce and their enterprise of committing to pay the living wage.”
