By Angela Green: BrewDog cancel paying real living wage.
BrewDog has announced it’s no longer willing to pay new employees the real living wage, from April new workers will receive the UK government’s national minimum wage of £11.44 an hour, below the £12 cost of living-based rate.
The brewer and publican said the move was part of an effort to return to profitability after making a £24 million loss last year. In a letter to employees the message was that hard decisions were needed to maintain financial stability despite what was reported as a “bumper” festive period.
Hospitality union Unite were one of the first to report the news, 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.
Revenue at BrewDog was £321 million in 2022-23, with a £24 million operating loss. Losses were due to increased production costs, particularly raised energy costs at its Ellon plant.
A spokesperson for the company told the BBC: “As a result of the changes we’re making – and despite unprecedented challenges in the hospitality sector – our staff outside London will be getting a 4.95% increase in base pay, and crew currently working in London will be paid 4.5% above the National Living Wage.
“We have always been fully committed to doing the best we can for our people, and our benefits package is far more generous than the industry average.”
What industry average benefits package data the spokesperson alluded to is unknown.
At a time where recruitment in our industry is particularly difficult, this sort of news is detrimental to the efforts of many to change negative perceptions of working in hospitality and catering.
Cohesive recruitment and retention in hospitality and catering 2024