John Lewis has raised concerns among its workforce by unveiling plans for reduced pay rises amid a strategic overhaul. The proposed policy empowers management to wield greater control over performance-linked pay increases, igniting tensions between leadership and staff.
Dame Sharon White, the current head will be stepping down, further complicating the situation. Employees were notified during a presentation that pay hikes would be reserved for those making “exceptional contributions,” indicating a shift in reward structures.
The company, struggling with years of underperformance, would redirect resources to facilitate a turnaround. With over 76,000 employees impacted, pay adjustments stand as a pivotal aspect, constituting a significant portion of the £ 10.5 billion in revenues.
The current constitution allows staff to get a raise based on performance, but proposed changes would alter the approval process, potentially intensifying discord. The John Lewis staff council is set to deliberate on these alterations, culminating in a vote in March.
The company emphasises transparency, asserting a commitment to recognising hard work within its employee-owned structure. The development precedes the unveiling of a turnaround plan by newly appointed Chief Executive Nish Kankiwala, stating the strategy would work around, Distinctively Us, The Partner Difference, Simple and Productive, and Fix the Basics.
