Morrisons on Friday became the latest British supermarket group to raise pay for store workers as competition to attract and retain staff hots up.
UK employers are offering higher pay deals in the face of staff shortages and accelerating prices, as the Bank of England watches those settlements closely as it weighs the risk that a jump in inflation to a 40-year high of 9% becomes embedded in the economy.
Morrisons, Britain's fourth largest grocer behind Tesco, Sainsbury's and Asda, said that from October it will pay its over 80,000 store and manufacturing staff a minimum of £10.20 ($12.56) an hour. Workers in London will get a minimum of £11.05 pounds.
Highest Paying Supermarket
Morrisons said the deal makes it the highest paying UK supermarket for store staff.
In March, Sainsbury's raised the basic hourly pay of its store workers to at least £10 pounds an hour.
British supermarket chain said in April that it will increase pay for its staff in outer London to the level already achieved by staff in the capital's inner areas, a source close the company said on Thursday after pressure from shareholders.
Tesco is paying a minimum of £10.10 from July.
Morrisons, owned by US private equity firm Clayton, Dubilier & Rice, said the pay deal is subject to approval, via a ballot, of staff who are members of trade union Usdaw.