BP to adopt Real Living Wage for UK retail staff


BP has decided to adopt the Real Living Wage (RLW) and from August 1 will pay all its directly-employed UK retail staff the RLW, as set by the Living Wage Foundation (https://www.livingwage.org.uk/).  

The move will affect around 5,000 staff working in c 300 BP-operated retail sites and stores across the UK.

BP’s said its hourly pay rates for these staff already exceed the government-set rates (the minimum wage and National Living Wage) but adopting the voluntary RLW standard will result in a pay increase for the very great majority. Increases for individuals will vary depending on their current rate and location (the RLW includes London weighting) but, on average across the UK, it will represent a pay increase approaching 5%.  

BP said it also intends to seek accreditation by the Living Wage Foundation – committing to paying all its UK staff the RLW and also having a plan to ensure that this also applies to all its contracted staff. As part of seeking accreditation it will commit to increase pay rates in line with reviews of the RLW.

While many companies have already signed up for the RLW (see https://www.livingwage.org.uk/accredited-living-wage-employers), BP said it believed it was the first retailer in the sector, and of its scale, to seek accreditation.

BP said it has been looking at adopting this voluntary higher standard for some time and believes adopting it is the right thing to do, both for its business and people. Chief executive Bernard Looney said: “It’s important recognition of the numerous challenges faced by our front-line staff, which have been highlighted during the current crisis.”

At the AGM, Sir Ian Davis, senior independent director who was chairing the meeting, said: “I believe this recognises the importance bp places on our frontline employees, who serve millions of customers and bring the purpose and values of bp to life day in, day out.”