COMP NEWS – Popular UK craft brewer Brewdog has committed to paying its employees a real living wage, calculated based on living standards in the UK, since 2015. But after nearly a decade, Brewdog is rescinding its commitment and paying its employees less.
Craft beer giant Brewdog will no longer pay its employees the real living wage.
Workers will receive the UK government’s national minimum wage of £11.44 an hour from April – below the £12 cost of living-based rate.
The Aberdeenshire-based firm said the move was “necessary” as part of an effort to return to profitability after making a £24m operating loss last year.
But former staff have accused the company of “abandoning its principles” over the move.
A letter to employees, seen by BBC Scotland News, said “hard decisions” had to be taken in order to maintain financial stability despite a “bumper” festive period.
Brewdog, founded by James Watt and Martin Dickie, had paid the voluntary wage since 2015.
The decision to withdraw the real living wage was tough, says senior management.
Bryan Simpson, hospitality organiser of Unite, said: “To withdraw the real living wage now, during the most acute cost of living crisis in a generation is outrageous.
“We are already working with our Brewdog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions.”
The real living wage is independently calculated based on living standards in the UK and is separate from the government’s national living wage.
The rate will increase to £12 an hour outside London and £13.15 for workers in the English capital on 1 April in line with inflation.
Brewdog staff over the age of 23 will receive a slight pay rise, but only from £10.90 to £11.44.
Those working in London will see no increase from their current rate of £11.95.
To read more about Brewdog’s announcement, click here.
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