A fair day s pay for a fair day s work

Transcription

1 At Morrisons, we believe all our colleagues deserve a fair day s pay for a fair day s work, regardless of their background, age, ethnicity or gender. We therefore welcome the Government s introduction of gender pay reporting, which will improve transparency in this important area. For our part, we are proud of the progress we are making as a diverse and inclusive employer, to provide more opportunities for women to progress, and to share more of our profits with all our colleagues through improved pay, bonuses, and benefits. A fair day s pay for a fair day s work Last year, as part of our colleague-led turnaround, we paid a market-leading rate of 8.50 an hour to all our Customer Assistants, we shared 29 million of our annual profits with frontline colleagues, and continued to offer all our colleagues the opportunity to access a wide range of competitive benefits. We provide all our colleagues and their families with a discount on Morrisons shopping, access to an annual sharesave scheme, flexible benefits, a choice of affordable Morrisons pension schemes, and up to four times their annual pay as life assurance. They re just some of the ways that we show our colleagues that everyone s effort is worthwhile. Clare Grainger Group People Director 1

2 Our numbers We have reported our gender pay gap for seven legal entities (see Our entities in the appendix), but we believe as a single, large, and vertically integrated business, it is our combined Group numbers that really matter: Gender Pay Difference between men and women s hourly rate: Our approach to pay across our business treats all our colleagues equally: Pay for almost 90% of our colleagues is agreed collectively with colleague representatives and is set equally for men and women holding the same role For example, after an initial training period we pay every Customer Assistant in our stores a market competitive rate of 8.50 per hour, regardless of their gender or the fact that their age may fall into a youth rates bracket For roles not covered by collective agreements, we make sure that pay is set within defined salary bands that are applied consistently to all our colleagues, male and female 12.1% Adjusted mean gender pay gap 2.6% 14.9% Over 70% of our colleagues work in frontline Customer Assistant roles serving our customers. If we consider the (mean) gender pay gap for just this group, it reduces to 2.6% Pay Quartiles Our analysis of our current s helps to explain how our gender pay gap (under the regulations) is made up: We typically receive much greater numbers of female applicants for our in-store Customer Assistant roles, and typically around 70% of these roles are held by women In contrast, some roles that receive higher rates of pay in return for craft food skills or unsocial working patterns, typically receive fewer female applicants: For example, almost 80% of our night replenishment roles in our stores, and over 90% of our craft skilled butcher, baker and fishmonger roles, have historically been held by men We encourage balanced applicant lists, but understand that some of these patterns can be explained by wider trends across society We also recognise that at middle, and, in particular, senior management levels we have less female representation than we would want in our leadership team This is something we have been actively working on (see Our progress), but this is an area where we know we have more to do. 69.7% 69.8% Lower middle 52.1% Upper middle 34.4% Lower Top 30.3% 30.2% 47.9% 65.6% 2

3 Our numbers Bonus Pay All our colleagues are eligible to participate in a bonus scheme, and all colleagues at the same work level have an equal opportunity to earn a bonus. For our frontline colleagues working in our stores, on our factory floors and in our warehouses, bonuses are paid for delivering service standards to our customers and can be directly influenced by colleagues. Through their collective efforts over the past year of reporting, our frontline colleagues have seen bonus payments increase by over 10 million for the year For middle and senior leaders, bonuses are awarded for overall business performance and their individual contribution. This ensures that all of our colleagues are able to receive additional rewards for improving the business for our customers Proportion of women receiving a bonus payment 89.4% Difference between men and women s bonus pay: 26.3% 47.8% Proportion of men receiving a bonus payment 86.7% While more women than men received a bonus last year, we do have a bonus gap. Both bonus schemes pay colleagues a percentage of their overall earnings or annual salary. We believe this is a fair way to calculate bonus payments, but we do recognise that a bonus gap arises because: We have a greater proportion of women in lower paid roles, which we continue to address (see Our progress on the next page) Almost 79% of women are working part-time in comparison to only 44% of men, which directly affects the bonus gap calculation because the regulations don t require a full time equivalent comparison We continue to support more flexible working arrangements for both women and men and continue to encourage part-time and flexible working in more senior roles in our business. 3

4 Our progress Our ambition is for all our colleagues to have the opportunity to develop, progress and grow. As we continue to build a broader and stronger Morrisons, we will better balance the number of men and women across our business and throughout our work levels. We have taken a number of steps between 2015 and 2017 to create greater opportunities for women to progress in our business. These include actively working to improve female representation in key business areas that have traditionally been maledominated. For example: We have increased the number of females joining our craft apprentice programmes by 400% in the past three years and have targets to continue to improve this The number of female Store Managers in our business has increased from 34 to 70 in the same time period. In early 2018, through further internal development and pathway programmes, we are approaching 100 female Store Managers Our senior team of Regional Managers who manage our stores has moved from less than 5% to almost 30% female and the proportion of female directors in our leadership team has increased to almost 30% in the same timeframe We are also focusing on building stronger routes for talent to accelerate up through our business and are actively looking to ensure strong female representation from future generations: We re rapidly growing our degree apprentice programmes, where we sponsor and pay for over 65 colleagues to study for their Business Management degree at two local universities Our graduate schemes are also an important source of talent for our business, and we re pleased that in the most recent intake over 60% were female Last year we launched a Women in Retail programme to create a support network for female colleagues who want to accelerate their careers and provide them with direct access to development opportunities We have made these improvements by actively recruiting female talent, and more importantly, by working at each level in our organisation to encourage women onto our new pathways programmes. In our stores alone, this means we now have over 250 more women actively working on progressing into management roles. This internal development will create further role models for women who want to grow their career at Morrisons. We know there is much more to do, but we are equally proud of the increasingly diverse and talented team that we are building at Morrisons, and recognise the huge opportunity to continue to broaden the talent base of our business. At Morrisons we are making progress, but there is more we can do. We will work collectively to offer everyone an equal opportunity to develop, progress and grow, so that we have the right talent and gender balance to build a broader and stronger business that is more relevant to our customers. David Chief Executive 4

5 Our team We are continuing to build a more gender-balanced team of talented individuals at every level in our organisation. With growing numbers of visible female role models we will collectively continue to make progress against our ambitions. Ionela & Aleksandra are Manufacturing Butchery Apprentices at our Colne Abattoir Sarah is an Engineering Apprentice at our meat manufacturing site, Farmers Boy Emma is the Market Street Manager in Hastings, and is one of 3,800 female managers in our stores Jodie buys our British livestock in a key role as Livestock Operations & Farming Development Manager Hannah joined us 8 years ago as a Customer Assistant, now she s our Store Manager at Louth Sarah is Regional Manager for Essex, leading a group of 20 supermarket stores Amy is our Category Director for Seafood, a category worth over 240m in annual sales Charlie-Mae is one of our Fish Apprentices, and last year was crowned National Fish Mastercraft winner Leah is one of 65 colleagues we re funding through a Business Management degree Koren joined us as a Graduate Trainee. Having completed her programme, she is now a qualified Accountant supporting retail Sian is the Buying Manager for our Free From range, a category that took over 60m last year and continues to see double digit growth Anne-Marie is the Site Manager for our Gadbrook Produce Manufacturing site Helen, our Head of Café Trading runs our national business of 404 Market Street Cafés Anna is Morrisons first female Chief Technology Director Work level 1 Work level 2 Work level 3 Work level 4 5 Work level 5 Work level 6 Leadership Team

6 Our entities Gender Pay by Entity Hourly Pay Bonus Pay In Receipt of Bonus Quartiles Lower Lower Middle Upper Middle Top Entity Female Male Female Male Female Male Female Male Female Male Group Combined Numbers 12.1% 14.9% 26.3% 47.8% 89.4% 86.7% 69.7% 30.3% 69.8% 30.2% 52.1% 47.9% 34.4% 65.6% Farmers Boy Ltd 11.4% 13.4% 19.5% 19.7% 85% 85% 41% 59% 44% 56% 26% 74% 17% 83% International Seafoods Ltd 6.5% 8.9% 8.4% 12.2% 63% 66% 56% 44% 48% 52% 17% 83% 31% 69% Rathbone Kear Ltd 10.5% 9.8% 10.0% 21.8% 78% 87% 17% 83% 24% 76% 14% 86% 9% 91% Safeway Stores Ltd 18.6% 20.8% 33.1% 55.6% 100% 100% 80% 20% 80% 20% 52% 48% 32% 68% Wm Morrison Produce Ltd 9.3% 12.0% 33.4% 24.7% 64% 75% 56% 44% 41% 59% 30% 70% 21% 79% Wm Morrison Supermarkets PLC 11.8% 14.3% 27.3% 49.6% 88% 86% 71% 29% 69% 31% 54% 46% 37% 63% Woodhead Bros (Neerock) Ltd 17.3% 14.1% 21.1% 31.2% 73% 80% 41% 59% 24% 76% 12% 88% 6% 94% I can confirm that the information in this report is accurate. Clare Grainger Group People Director 6