Johnstons of Elgin become living wage employer

As of July 1, Johnstons of Elgin will be registered with the Living Wage Foundation and will pay the living wage of £9 an hour to all employees.

More than 300 of the company's employees are set to benefit from the increase in wages, with a "significant" wage rise expected for those currently in the lowest pay bracket, Johnstons CEO Simon Cotton said.

Trainee rates will remain in place – but only for the Living Wage Foundation's recommended maximum of six months.

Mr Cotton thanked his employees as he announced the living wage. He told them: "Our ability to make this change is a direct result of your hard work as a team to put Johnstons of Elgin on a sound financial footing.

"This is something which I am very pleased to be able to do many thanks for your work in making this possible."

The living wage is completely different from the legal minimum wage enforced by law, and is voluntarily paid by a fraction of companies to employees.

Little more than 5,000 businesses in the United Kingdom are currently paying the living wage. Given there are nearly 350,000 private sector businesses in Scotland alone, this is a significant commitment from Johnstons.

Mr Cotton added: "As well as being good for society, there are significant business benefits to paying the real living wage. These include our ability to attract and retain staff and our ability to market ourselves to potential customers."

SNP MSP Richard Lochhead was delighted with the announcement. He said: "Johnstons of Elgin is one of Moray’s biggest and most prestigious employers and I have no doubt that the company’s commitment to pay a living wage to all its staff will be a boost to those who work there.

"We have a number of businesses locally who are now paying their staff a living wage and, in a low wage economy like Moray, every move that increases levels of pay is to be welcomed.

"It is absolutely right that a hard day’s work means a fair day’s pay and I hope that other local businesses will follow Johnstons’ lead."

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