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The UK retail group of John Lewis and Waitrose faces demands to reinstate a staff bonus after a three-year drought as the partnership tries to turn itself around.
Some disgruntled workers have shared an open letter and launched a petition through Organise, a platform supporting worker-led campaigns, calling on bosses to bring back bonuses. The last time the partnership paid a bonus was for the year to January 2022.
The campaign has attracted almost 4,000 signatures, including current and former John Lewis and Waitrose employees, as well as members of the public.
The John Lewis Partnership runs 36 department stores as well as the Waitrose supermarket chain, and is owned by all of its 69,000 staff. Some employees claim that this partnership model is being eroded because of the group’s decision not to pay a bonus despite returning to profitability.
“We’re working harder than ever, with fewer staff and growing workloads, but getting less recognition,” they wrote. “The bonus meant something more than just money. It was a sign that the company saw and appreciated us.”
“It is disheartening to see the bonus [paused] when so many partners . . . have worked extremely hard and remained committed during challenging times,” one employee told Organise. Another said other businesses offered better pay and perks without being a partnership.
Earlier this year, the retailer said it would again not pay an employee bonus although it had reported a 73 per cent increase in pre-tax profit to £97mn for the year to January 25, on a 3 per cent increase in sales to £12.8bn.
The retailer had returned to profitability the previous year after three years of losses.
John Lewis said at the time that it did not believe “it would be right” to pay a bonus for last year as it continued to reinvest in efforts to revive its fortunes after a challenging period, and after it had increased pay by a total of £114mn earlier this year.
Chair Jason Tarry, who spent more than three decades at Tesco and succeeded Dame Sharon White in September, said in March he was “determined to pay a bonus as soon as we can”.
The group also said it would take a £40mn hit this year as a result of increases to employers’ national insurance contributions.
The demands to reinstate the bonus come ahead of the group’s annual general meeting on June 12.
A person close to John Lewis said the AGM would focus on corporate governance rather than being a forum for discussion in the same way it is for listed companies. They added that debate had already been robust about the bonus with employees, who also have the opportunity to grill management during twice-yearly meetings.
The John Lewis Partnership said it was proud of its benefits package and that the bonus remained an important feature of its employee-ownership model, alongside its democratic structure. “Our partners understand that we’re focused on improving their base pay and investing in our business, so we can best serve our customers.”
