New pay deal agreed for colleagues

A pay increase averaging 5.8% is being awarded to colleagues working for community retailer Lincolnshire Co-op.

The deal, which was discussed and recommended for approval with the society’s union Usdaw, covers more than 95% of Lincolnshire Co-op’s 2,800-strong team who are part of the retail agreement and the specialist agreement.

All roles will receive a minimum of £12.36 per hour and every colleague covered by the agreements will get at least a 77p per hour uplift. The increase will be paid in the society’s May pay run and backdated to 1^st April 2025.

The new rate of £12.36 means Lincolnshire Co-op continues to pay all colleagues at least 15p per hour above the National Living Wage. This includes team members who are apprentices or aged under 21 who can legally be paid a different rate. (National Minimum Wage and National Living Wage rates - GOV.UK)

Colleagues covered by the retail and specialist agreements include frontline colleagues in all business areas such as food, pharmacy, travel, post office and funeral, as well as team members who work in support services.

The changes will mean that Lincolnshire Co-op will invest an extra £3.3m per year into colleague pay.

Lincolnshire Co-op’s Chief Executive Officer Alison Hands said: “We want to support our colleagues during this challenging time, where people’s household budgets are under pressure. Every team member covered by these agreements will receive a minimum of 77p an hour more and this will be particularly impactful for our frontline colleagues.

“It is a large investment into colleague pay. Combined with other external pressures such as inflation and significant increased costs, it means we do need to think broadly about our total cost base, making sure we are investing wisely where we will see a return. Growth will enable us to continue to provide our valued services and give back to our community.

“We were pleased to be able to work with Usdaw through this process and appreciated the opportunity to share the pressures we are under as well as outline our plans for growth.”

Usdaw National Officer Jayne Allport said: “We are pleased to have negotiated an above-inflation pay increase, despite lower inflation rates than last year and following on from previous significant pay increases.

“The cost of living continues to be a key concern for our members, so the business’ decision to respond in such a positive manner is a welcome one for them.

“Usdaw has a longstanding and valued relationship with Lincolnshire Co-op. Our members are key workers in a business that delivers an essential service in our communities and it is only right they are fairly rewarded.”