Tesco and B&Q to cut overtime
The increase of the minimum wage might be good for a lot of workers' pay packets, but some businesses are clearly not happy about it. As such, some of them are reducing staff benefits and changing overtime as a response.
Next, B&Q, Tesco, and Whitbread are just some of the big companies who have reduced their costs, although there's a lot of chat that says "no, honestly, this has nothing to do with the increase in minimum wage, honestly it isn't."
In case you've been living your life with your head in a bucket full of muck, in April, the £6.70 national minimum wage is going to go up by 50p an hour to £7.20. Now, Tesco are going slightly above that, with a minimum wage of £7.62. However, they're cutting overtime pay from double, to time-and-a-half.
Whitbread, who own Premier Inn hotels and Costa coffee shops, have been complaining that this pay rise for the country is going to set them back £20 million a year, so there's going to be some costs being cut. However, in some areas, they've said that those under 25 will not get the national living wage.
B&Q will be getting rid of double pay for those working on Bank Holidays and on Sundays, according to reports. Speaking to the Mail, they said: "Our people are very important to us and B&Q is committed to being a good payer and remaining so in future. The majority of our employees will be unaffected or better off."
We'll have to see what other plans they've got, after they've all crunched their numbers after digesting the latest Budget.