Thursday, 8 March 2018

John Lewis staff bonus cut again for fifth year in a row as profits fall

Bonuses for 84,000 staff at John Lewis and Waitrose have been cut for the fifth year in a row.
Employees will get a 5% bonus, down from 6% last year and the lowest since the 4% paid out in 1954.

Annual group profit, before the partnership bonus, tax and exceptional items, fell 21.9% to £289.2m.

John Lewis Partnership chairman Sir Charlie Mayfield said 2017 had been a "challenging year", as expected, with "subdued" consumer demand.

He said weakness in sterling had led to higher costs, putting pressure on the business's profit margin.
The partnership said it had been hit by exceptional costs of £111.3m, including £72.8m on restructuring and redundancy costs, principally in relation to brand, distribution and retail operations.

"This was why we chose to reduce the proportion of profits paid as partnership bonus last year so as to absorb these impacts while continuing to invest in the future and in strengthening our balance sheet," Sir Charlie said.

He said the firm remained committed to increasing pay rates for non-management staff, and that the average hourly rate of pay for a non-management workers was £8.91.

BBC     News.