Record growth in worker remuneration the biggest concern of the Bank of England
09 October 2023 - 17:32
byJames Davey
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Employees pack boxes at the Amazon fulfillment centre in Dartford, the UK, July 7 2023. Picture: BLOOMBERG/CHRIS RATCLIFFE
London — Amazon UK will spend £170m on two pay rises for its front-line operations staff over the next six months in a move that could catch the attention of the Bank of England (BoE), which is keeping a close eye on inflation pressures.
The internet giant, which employs 75,000 in the UK, said on Monday that from October 15, minimum starting pay would rise at least £1 an hour to £11.80-£12.50, depending on locality. Pay rates will rise to £12.30-£13 an hour from April 2024.
The increases mean Amazon’s minimum starting pay will have risen 20% in two years and 50% since 2018, it said.
In September, as it paused a run of interest rate hikes, the BoE said record growth in workers’ pay, its biggest concern, was not backed up by other measures of the labour market, suggesting it expects wage growth to slow soon.
Amazon UK also said it has started recruiting more than 15,000 festive season roles in the UK. Last week, supermarket groups Morrisons and Aldi said they are hiring 3,000 to 3,500 extra staff for the Christmas season.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Amazon UK’s pay hikes may fuel inflation
Record growth in worker remuneration the biggest concern of the Bank of England
London — Amazon UK will spend £170m on two pay rises for its front-line operations staff over the next six months in a move that could catch the attention of the Bank of England (BoE), which is keeping a close eye on inflation pressures.
The internet giant, which employs 75,000 in the UK, said on Monday that from October 15, minimum starting pay would rise at least £1 an hour to £11.80-£12.50, depending on locality. Pay rates will rise to £12.30-£13 an hour from April 2024.
The increases mean Amazon’s minimum starting pay will have risen 20% in two years and 50% since 2018, it said.
In September, as it paused a run of interest rate hikes, the BoE said record growth in workers’ pay, its biggest concern, was not backed up by other measures of the labour market, suggesting it expects wage growth to slow soon.
Amazon UK also said it has started recruiting more than 15,000 festive season roles in the UK. Last week, supermarket groups Morrisons and Aldi said they are hiring 3,000 to 3,500 extra staff for the Christmas season.
Reuters
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