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John Lewis and Waitrose’s British retail group demand that staff bonuses be revived after three years of drought as the partnership tried to turn its own head.
Some disgruntled workers share open letters and urge the boss to launch petitions through an organization, a platform that supports worker-led campaigns, and to retrieve the bonus. The last time the partnership paid the bonus was in the year until January 2022.
The campaign attracted almost 4,000 signatures, including current and former John Lewis and Waitrose employees, as well as members of the public.
John Lewis Partnership operates 36 department stores and Waitrose supermarket chains, owned by an entire 69,000 staff. Some employees argue that this partnership model is being eroded by the group’s decision not to pay a bonus when it returns to profitability.
“We’re working harder than ever, fewer staff and more workloads, but less aware,” they write. “The bonus meant more than just money. It was a sign that the company saw us and thanked us.”
“It’s disappointing to see the bonus when so many partners continue to work so hard and commit in challenging times,” an employee told the organization. Another said the other companies offered better salaries and perks without becoming a partnership.
Earlier this year, the retailer reported that 73% of pre-tax profits had risen to £97 million through January 25th, with sales rising 3% to £12.8 billion, but once again said they would not pay employee bonuses.
The retailer returned to profitability the previous year after three years of losses.
John Lewis said at the time he didn’t believe it was “right” to pay last year’s bonus. That comes after continuing to reinvest efforts to restore the fortune after a challenging period, increasing a total of £114 million earlier this year.
Chairman Jason Tarry, who spent more than 30 years at Tesco and took over Dame Sharon White in September, said in March he was “decided to pay the bonus as soon as possible.”
The group also said it would need a £40 million hit this year as a result of an increase in employers’ national insurance contributions.
The request to revive the bonus comes ahead of the group’s annual general meeting on June 12th.
A person near John Lewis said that AGM will focus on corporate governance rather than a forum for discussion, just like listed companies. They added that the discussion is already robust about bonuses with employees who have the opportunity to grill management during meetings per year.
John Lewis Partnership is proud of its benefits package, saying the bonuses remained an important feature of the employee and ownership model along with their democratic structure. “We understand that our partners are focused on improving base salary and investing in our business, so we can serve our customers best.”
