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Travel agents working for community retailer Lincolnshire Co-op are among staff awarded a pay increase averaging 5.8%.
The deal, which was discussed and recommended for approval with the society’s union Usdaw, covers more than 95% of Lincolnshire Co-op’s 2,800-strong workers.
All roles will receive a minimum of £12.36 an hour with the raise paid in the society’s May pay run and backdated to April 1.
The new rate means Lincolnshire Co-op continues to pay at least 15p per hour above the National Living Wage. This includes apprentices or those aged under 21 who can legally be paid a different rate.
Those covered by the society’s retail and specialist agreements include frontline staff in all business areas such as food, pharmacy, travel, post office and funeral, as well as staff working in support services.
The changes mean that Lincolnshire Co-op will invest an extra £3.3 million a year into staff pay.
Chief executive Alison Hands said: “We want to support our colleagues during this challenging time, where people’s household budgets are under pressure.
“Every team member covered by these agreements will receive a minimum of 77p an hour more and this will be particularly impactful for our frontline colleagues.
“It is a large investment into colleague pay. Combined with other external pressures such as inflation and significant increased costs, it means we do need to think broadly about our total cost base, making sure we are investing wisely where we will see a return. Growth will enable us to continue to provide our valued services and give back to our community.
“We were pleased to be able to work with Usdaw through this process and appreciated the opportunity to share the pressures we are under as well as outline our plans for growth.”
Usdaw national officer Jayne Allport added: “We are pleased to have negotiated an above-inflation pay increase, despite lower inflation rates than last year and following on from previous significant pay increases.
“The cost of living continues to be a key concern for our members, so the business’ decision to respond in such a positive manner is a welcome one for them.
“Usdaw has a longstanding and valued relationship with Lincolnshire Co-op. Our members are key workers in a business that delivers an essential service in our communities and it is only right they are fairly rewarded.”