[UK] Costa Coffee raises wages for 16,000 workers before living wage rise

[UK] Costa Coffee raises wages for 16,000 workers before living wage rise
10 Mar 2023

Costa Coffee has announced a planned wage increase for more than 16,000 UK workers as it becomes the latest firm to increase pay ahead of the living wage increase, Evening Standard reports.

The coffee giant is owned by the Coca-Cola Company. Costa said it will raise the base rate of pay for workers across its 1,520 company-owned stores in the UK from £10 an hour to £10.70 an hour from April 1.

The base pay of more experienced baristas will reportedly rise from £10.53 to at least £11.23 an hour, depending on location and role.

The hikes will see pay increase by between 6.1 per cent and 7.3 per cent, excluding bonuses; an average of 6.7 per cent.

The news follows an announcement by high street rival Pret A Manger last week that the chain intended to increase the base salaries of its workers by 2.9 per cent from the start of next month; going from £10.30 an hour to £10.60 an hour.

These moves precede a 9.7 per cent increase in the UK’s national living wage – the law establishing the minimum amount that companies must pay people over 23 – to £10.42 an hour on April 1.

Costa reportedly said it increased salaries in April and October 2022, taking its base rate up by more than 14 per cent from £9.36 to £10.70 an hour.

UK inflation is currently 10.1 per cent, a slight drop from a peak of 11.1 per cent in October 2022, following rocketing energy and food bills and the cost of living shooting up across the board over the past year.

Nick Orrin - Costa’s interim UK and Ireland managing director - said, “We continue to live in uncertain times, but we are passionate about putting our teams and communities first.”

Costa will offer staff who complete an introductory training programme an extra 20p an hour on top of the new base rate. The chain’s more experienced baristas – Barista Maestros – will receive an additional 50p an hour.

Costa said this means three-quarters of its staff will be paid at least £10.90 per hour from April. It also reportedly offers other benefits, such as a cash bonus linked to the performance of individual stores, free drinks on shift and a staff menu discount of between 25 per cent and 50 per cent.


Source: Evening Standard

(Quote via original reporting)

Costa Coffee has announced a planned wage increase for more than 16,000 UK workers as it becomes the latest firm to increase pay ahead of the living wage increase, Evening Standard reports.

The coffee giant is owned by the Coca-Cola Company. Costa said it will raise the base rate of pay for workers across its 1,520 company-owned stores in the UK from £10 an hour to £10.70 an hour from April 1.

The base pay of more experienced baristas will reportedly rise from £10.53 to at least £11.23 an hour, depending on location and role.

The hikes will see pay increase by between 6.1 per cent and 7.3 per cent, excluding bonuses; an average of 6.7 per cent.

The news follows an announcement by high street rival Pret A Manger last week that the chain intended to increase the base salaries of its workers by 2.9 per cent from the start of next month; going from £10.30 an hour to £10.60 an hour.

These moves precede a 9.7 per cent increase in the UK’s national living wage – the law establishing the minimum amount that companies must pay people over 23 – to £10.42 an hour on April 1.

Costa reportedly said it increased salaries in April and October 2022, taking its base rate up by more than 14 per cent from £9.36 to £10.70 an hour.

UK inflation is currently 10.1 per cent, a slight drop from a peak of 11.1 per cent in October 2022, following rocketing energy and food bills and the cost of living shooting up across the board over the past year.

Nick Orrin - Costa’s interim UK and Ireland managing director - said, “We continue to live in uncertain times, but we are passionate about putting our teams and communities first.”

Costa will offer staff who complete an introductory training programme an extra 20p an hour on top of the new base rate. The chain’s more experienced baristas – Barista Maestros – will receive an additional 50p an hour.

Costa said this means three-quarters of its staff will be paid at least £10.90 per hour from April. It also reportedly offers other benefits, such as a cash bonus linked to the performance of individual stores, free drinks on shift and a staff menu discount of between 25 per cent and 50 per cent.


Source: Evening Standard

(Quote via original reporting)

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