IKEA to introduce Living Wage for all UK co-workers

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Home furnishing retailer IKEA has announced it will adopt the Living Wage from the 1st April 2016, reinforcing its commitment to its co-workers.

As part of a holistic transformation of basic co-worker conditions, IKEA will pay the Living Wage as defined by the Living Wage Foundation. This means that all co-workers employed by IKEA across the UK will receive a minimum of £7.85 per hour and £9.15 per hour within London. More than 50% of IKEA’s 9,000 co-workers will be impacted by this wage increase.

Gillian Drakeford, IKEA UK and Ireland country manager, said: “As a values-driven organisation, we are guided by our vision to create a better everyday life for the many people, which of course includes our co-workers. We believe our people are the inner strength of our company, so it is only right to ensure we provide a meaningful wage that supports the cost of living.

“Introducing the Living Wage is not only the right thing to do for our co-workers, but it also makes good business sense. This is a long-term investment in our people based on our values and our belief that a team with good compensation and working conditions is in a position to provide a great experience to our customers.”

The introduction of the Living Wage is part of a wider transformation IKEA is making to basic co-worker conditions as it looks to ensure that co-workers not only have the right level of pay but also a schedule that works for both them, as well as the business and customers, and the right contract.

Rhys Moore, director of The Living Wage Foundation, said: “We are delighted with this momentous announcement that IKEA will be accrediting as a Living Wage employer. This is a historic moment in the life of the Living Wage movement, as IKEA become the first national retailer to announce their commitment to the Living Wage and they will reward all their staff with an hourly rate of pay that covers the cost of living. This is a huge step for the British retail sector and we hope that many other businesses will follow the leadership IKEA is showing on the issue of basic pay.”

The Living Wage is the latest in a series of investments that IKEA has made in its co-workers over the past two years. In 2013, the One IKEA Bonus programme was introduced, which sees all co-workers receive a performance-related bonus, as well as the Tack! loyalty programme, which rewards co-workers who have been with IKEA for more than five years with an annual contribution to their individual pension plans.