The John Lewis Partnership has said it is restoring staff bonuses, after it was forced to scrap the rewards for the first time last year, since 1953.
Staff, who are called partners due to having a share in the business, will get a bonus of 3 percent, which is equal to a week and a half’s pay.
The Guardian reports the group also plans to raise wages by 2 percent on top of its pledge to pay the real living wage.
John Lewis saw a loss of £517 million in 2020, but managed to make a 38 percent recovery in 2021. Its supermarket chain, Waitrose also showed growth, which also helped the improved deal for partners.
The chairman, Sharon White, said: “With our partners, like the whole country, facing a cost-of-living squeeze, we believe that this is the right time to pay the voluntary real living wage, nationwide.”
However, she warned about uncertainty in Ukraine and other global events, in addition to the cost-of-living crisis affecting the chain and its wider environment.
She said: ‘As inflation and energy prices rise, our customers face higher living costs. While this creates uncertainties as we look ahead, we remain focused on investing significantly in our Partnership Plan to transform and grow our business.’
Last year, the partnership announced plans to cut a thousand jobs, after previously announcing it would let more than 1400 staff go as part of its closures.
It also had to get rid of its ‘Never Knowingly Undersold’ promise, which will be retired in July, as the chain said it could not compete with online retailers.
Under the promise, customers could reclaim the cost difference from the retailer, if they found an exact item elsewhere for a cheaper price.
John Lewis said it would focus on its Anyday value ranges and invest £500 million in the business. This is £100 million more than last year.
Meanwhile, in response to the conflict in Ukraine, John Lewis is removing any products made in Russia from its shelves at both Waitrose and John Lewis.