M&S agrees 'improved' pay deal after row over planned changes

As well as a “transition payment” to compensate staff along with another potential one-off payment to maintain existing remuneration until March 2019, M&S said from that same year, any worker set to see pay fall from current levels would get another additional payment of 50% of their reduction in total pay.

They will be offered guaranteed extra hours to make up the remaining 50% that will amount to no more than three hours a week.

A pensions overhaul to move staff on its “not sustainable” final salary pension scheme to a defined contribution plan is also going ahead, but M&S will extend the cash supplement support from the two years it originally offered to three years.

M&S, which introduced the overhaul in response to the National Living Wage, said the “significantly improved support means that all colleagues will either receive higher pay or the opportunity to maintain current pay level”.

Retail Director Sacha Berendji added: “We’ve listened to our colleagues, acted on their feedback and are pleased that we’ve reached an outcome that gives enhanced support for our colleagues as well as making necessary changes to our business.”

But an M&S employee who has worked at the chain for nearly 20 years, told the Standard the updated deal constituted only a “slight movement” and was “not enough”. He also expressed concern that failure to agree could result in his contract being terminated.

“I love my job and my customers and M&S are better than some. I just feel that we should be the company that benchmarks good practices for others and unfortunately we are not.”

McDonagh added: “What M&S is telling them is that even if they work longer hours to make up the difference, they will earn no more money in three years’ time than they do today. How is that fair?

“It would be a betrayal to loyal staff, many with more than two or three decades professional experience, to say that this is a very good offer for them.”