Costa Coffee and Starbucks workers to be paid living wage

[dutchman]

Popular coffee chain Costa has outlined its plans to join Starbucks in paying its workers a full living wage.



Despite past warnings from the company - which has numerous coffee shops in Coventry and Warwickshire - that it would drive up prices, Costa and Starbucks have both announced that thousands of its staff will receive wage increases.

From October onwards, the vast majority of Costa and Starbucks baristas will earn a minimum of £7.40 an hour.

The new rates of pay will also apply to 4,500 staff members aged under 25 years old, and supervisor pay will increase to £8.72 per hour.

The national living wage announced by Chancellor George Osborne in his summer budget will see all workers aged 25 and over paid £7.20 an hour from next April, rising to £9 from 2020.

Chris Rogers, managing director of Costa, said: "For some months we have been planning to increase the pay of our 12,000 baristas and last week wrote individually to them all with the news that they will be getting a pay rise from October 2015.

"So from next month the vast majority of our baristas will earn a minimum of £7.40 per hour.

"Our new rates of pay apply to all Costa team members including those under 25 years old. Our people are the heart of our business and we're committed to investing in them through higher rates of pay, training, job creation and apprenticeships."

The news comes after Coventry's Morrisons and Lidl supermarkets promised to pay its workers a full living wage.

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Greggs warn pasties will become more expensive due to living wage in 2016



High street bakery Greggs has warned prices of its beloved pasties could be forced upwards next year.

The baker, which boasts ten Coventry stores stretching from the city centre to Jardine Crescent, claims the Government's introduction of a 'national living wage' next year could change its prices.

Selling everything from bread loaves to pastries and pies, Greggs has said there is little pressure on prices right now - but that will soon change.

A Government wage hike will see the minimum wage change to the national living wage of £7.20 an hour.

Greggs - which opened 65 new shops during 2015 alone - has hinted it will raise wages beyond that, though.

The baker current pays its staff a standard rate of £7.11 an hour - 41p higher than the current minimum wage.

Now, Greggs suggest it will “maintain a competitive position” compared to rival employers.

A trading update this morning stated: “Increases to wage rates will drive greater inflationary pressure.”