While supermarket workers get extra praise, their bosses get extra pay

[Judi Lynn]

Polly Toynbee

As a dark recession looms, now is the time to make sure no company profits from coronavirus

Fri 5 Jun 2020 04.30 EDTLast modified on Fri 5 Jun 2020 04.31 EDT

Cashing in on coronavirus is a bad look. Supermarkets have seen a surge of as much as 50% in sales, reports Pensions & Investment Research Consultants (PIRC), which scrutinises companies’ good governance. Yet supermarkets have been gifted millions in a business rates holiday windfall that they need least.

David Potts, the CEO of Morrisons, and Trevor Strain, its chief operating officer, are set to take a 24% pension contribution, in direct opposition to a corporate governance code that says their rates should be aligned with those of their workers. Morrisons staff – the ones putting their lives on the frontline - are only getting 5%. Let’s hope someone at the company’s AGM next week voices a modicum of protest.

Meanwhile Tesco is expected to clock up £300m extra profit thanks to Covid-19. Its CEO is taking an extra 25% cash payment on his £1.25m salary, holding out for a performance-related bonus, while Tesco frontline staff get just a 7% contribution to their workplace scheme. Tesco recently paid out £635m in dividends to shareholders while receiving a similar sized tax-break from the government’s emergency coronavirus support package.

And the phenomenal share option taken by Ocado’s top executives amounts to £88m – while the pay ratio from boardroom to average staff wage is a staggering 2,605%, says the High Pay Centre. It’s worth noting, wryly, that Ocado’s top three executives take 1% of the company’s value, but are met with rather less public outcry than when John McDonnell proposed companies should put 1% of their value into a fund for their entire workforce.

More:
https://www.theguardian.com/commentisfree/2020/jun/05/supermarket-workers-praise-bosses-pay-recession-company-profits

[SamKnause]

1. Same shit different day, year, or decade.

The rich fucks just don't won't to turn loose of a penny.

They don't value their workers.

It is disgusting.

[Igel]

3. Sounds like the contracts were written for different circumstances.

In normal times, if Tesco had a 25% increase in income the performance bonus would make a lot of sense, for example. In this case, it's unrelated to management's actions.

It's a tough call, because a lot of management's taking a hit on the chin for crappy performance. And it's still unrelated to management's actions.

[no_hypocrisy]

2. Tell me about it.

My cashier's work hours were 35 a week -- until this week.

Now they're down to 21. That's $275 GROSS pay a week.

What happened: During the "panic buying" phase of grocery consumerism, management stretched the hours of existing workers and hired a slew of new workers. Once they were trained and working, the crowds stayed home. IOW, the workforce was dramatically diluted.

When you're part time, you're subject to this kind of thing while management gets a certain sum and benefits.