BrewDog CEO hits back at complaints as brewery under fire over 'outrageous' wages
Brewery and pub chain BrewDog is facing a challenge from its employees after announcing it will be hiring new staff on the legal minimum wage instead of the higher voluntary rate.
The Unite union criticised the move as “outrageous”, especially coming amid the continuing cost-of-living crisis.
But the company's CEO James Watt's has said BrewDog actually invests more in its staff than competitors and that their bonuses are more generous than real living wage.
BrewDog said in a letter to staff: “Even with this strong performance over Christmas, as a wider business there is no hiding from the fact that in 2023 we made a trading loss, and despite many efforts in the past 12 months to reduce our spending we still need to find more ways to get this business back to profitability and the financial stability that is needed.
“Inevitably, this does mean making some hard decisions.”
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From this month, new workers will be hired on the legal minimum wage of £10.42 an hour for those aged 23 and over, which is less than the voluntary so-called real living wage of £10.90 that existing staff get.
Pay for workers outside London will increase to £11.44 an hour from April, in line with the new legal minimum, below the new real living wage of £12 an hour that accredited employers pledge to pay from April.
Unite’s lead organiser for hospitality, Bryan Simpson, said: “BrewDog have been paying the real living wage since 2015.
"To withdraw it now, during the most acute cost-of-living crisis in a generation is outrageous.
“We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions.”
The letter to staff added that BrewDog has always been committed to do the best it can for employees, from abolishing zero-hours contracts, having a profit share scheme, and other benefits.
Writing on X, formerly known as Twitter, Mr Watts defended the decision.
He said: "By having the additional payments linked to customer service and performance (through profit share and our customer service incentives) we can invest in our people in a way that delivers great service for our customers and helps build a solid and profitable business that benefits all of our shareholders.
"We also do not use any zero-hour contracts which many of the businesses in our industry use.
"It is important to note that nobody’s wages are going down and what we announced is actually a pay increase most of our people: our staff outside London will be getting a 4.95% increase in base pay, and crew currently working in London will be paid 4.5% above the National Living Wage."
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