LONDON (Reuters) -The British arm of German discount supermarket Aldi has edged up its pay for over 28,000 hourly paid workers for the second time in two months, leapfrogging an increase by rival Lidl
Aldi Boosts Pay for UK Workers Again, Outpacing Lidl's Increases
Aldi's Wage Increases and Market Context
LONDON (Reuters) -The British arm of German discount supermarket Aldi has edged up its pay for over 28,000 hourly paid workers for the second time in two months, leapfrogging an increase by rival Lidl GB.
Comparison with Lidl's Pay Rates
Aldi said on Friday it would pay 13.02 pounds ($17.59) an hour "to maintain its position as sector leader." The group also provides paid breaks.
Impact on the Grocery Sector
Earlier this month, Lidl gave its workers a fifth pay rise in two years, upping its entry-level hourly rate to 13 pounds nationally from September 1, rising to 13.95 pounds depending on length of service.
Bank of England's Monitoring of Wages
Aldi had announced in July that it would pay 13 pounds an hour from September 1.
Workers in London at both discounters will receive higher rates.
The Bank of England is keeping a close eye on wage settlements as it assesses whether inflation pressures will allow it to lower interest rates further.
Official data published on August 12 showed Britain's jobs market weakened again with payrolls falling for a sixth month. However, wage growth stayed strong, underscoring why the BoE is cutting borrowing costs only cautiously.
Grocery industry leader Tesco will pay a minimum of 12.64 pounds an hour from September 1.
Britain's government-mandated main minimum wage is currently 12.21 pounds an hour. The body which effectively sets the rate has said it will probably need to rise to 12.71 pounds next year to keep up with the government's goal for it to match two-thirds of median earnings.
($1 = 0.7402 pounds)
(Reporting by James DaveyEditing by William Schomberg)
