Readers have been having their say on Greggs’ warning that prices could rise to fund the national living wage.
The North East bakers chain currently pays its shop staff £7.11 an hour, but Chancellor George Osborne said in his July Budget the UK’s hourly minimum wage from April 2016 will lift to £7.20 for over 25s, from its current level of £6.50, and to at least £9 an hour by 2020.
We reported yesterday how the firm, which runs 1,668 outlets, said it was not planning price hikes, but cautioned over the impact of a higher wage bill on the business.
The statement prompted an angry response on our website comments section and Facebook page.
Here’s a baker’s dozen of responses from you:
1) TheGrumpalo: Why is it so imperative that companies such as Greggs have to make such vast profits, whilst at the same time, attempt to pay their workers the bare minimum and avoid paying their taxes? Where does it all go? There is no justice for the British worker.
2) Marcus P: Greggs, like so many high street businesses, have become hooked on state wage subsidies like tax credits. Any company posting profits should not have its wage bill subsidised by the UK tax payer.
3) doubletake: If I was ever a customer I would certainly go elsewhere. I think Greggs are found to shoot themselves in the foot on this one.
4) brixham: Hi Mr Director, you try and live on £7.11 ahour, and pay your council tax, your rent, shopping, gas, electricity. The more we get the more we can spend. If you look after your works your works will look after you.
5) Lisa Marie: They’re expensive enough!!!
6) Paul Daly: I’d say I dont mind as long as the workers got a decent wage rise
7) Audrey Lucas: No they are making huge profits according to the news so they should pay higher wages without putting anything up
8) Barry Jack: Of course they care about profits they have shareholders to service and that’s who they answer to. Forcing companies to pay people more will simply mean the price of everything will go up we might as well get used to it now.
9) David Barber: I don’t undrstand.. the unions use every weapon in their arsenal, including strike action, to raise wages... but becsuse the torys actually force thr companys to increase the minimum wage there are no end of moans.... What’s all that about?
10) Greg Albrighton: Gregg’s can easily pay a living wage by reducing their margins. £59m profit in 2015 and a 23p dividend.
Large retailers have been profiteering from tax credits since they came in.
11) Ian Kitching: What’s the point off increasing living wages if your going hike the price of everything, cos no doubt others will follow suit.:
12) David Wheelhouse: Stopped buying their pasties years ago were getting smaller and smaller with very little in them and price went up and up ., along with their profits. They can afford to pay better wages
13) David LLoyd: Companies like this are full of it saying they need to raise prices, they make millions in profits every year