Morrisons is locked in a pay dispute with staff after informing workers it does not intend to offer substantial wage increases this year.
The Bradford-based supermarket group is currently embroiled in discussions with Usdaw (Union of Shop, Distributive and Allied Workers), which represents approximately 45,000 Morrisons workers.
The union alleges that the retailer has declined to propose any pay rise beyond the statutory national living wage.
In the UK, the national living wage for individuals aged 21 and over currently stands at £12.21 per hour, with an increase of 4.1 per cent to £12.71 scheduled for April.
Concurrently, the minimum wage for workers between 18 and 20 will rise by 8.5 per cent to £10.85 per hour.
Morrisons linked its decision to pay staff the minimum allowed amount on a “number of challenges”, including £200 million of “unexpected” cost increases which came into force last April, including changes to national insurance contributions.
The UK’s fifth largest supermarket group also highlighted pressure from “strong competition for sales and market share” as well as the impact of a cyber attack on its technology supplier Blue Yonder late in 2024.
A Morrisons spokesman said: “On top of this, over the last financial year, we’ve invested over £100 million in colleague hourly pay, and with the national living wage increase in April 2026, we will invest a further £70 million.
“Against this backdrop, we have to balance any further pay offers, with the overall performance, affordability and long-term stability of the business.
“We have not been able to present an offer to the Usdaw national committee at this time and the union has confirmed they will now follow the process and proceed with a ballot of their membership.
“It is Morrisons’ clear position that we want to continue the dialogue with Usdaw.”
Darren Matthews, Usdaw national officer, said: “It is a sad day when one of the largest retailers in the country is now a national living wage employer, particularly as they were once one of the highest paying of the supermarkets.
“We have to question whether this is the result of private equity taking over a family-run business.
“We are very disappointed that the company has not meaningfully engaged with Usdaw in trying to secure a fair pay deal for our members, who are core to the success of the business.
“We urge the company to change their stance and come back to the negotiating table.”
