Meeting called for over BrewDog's decision to stop paying living wage
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Aberdeenshire East MSP Gillian Martin has written to craft beer giant BrewDog calling for a meeting to discuss the employer’s plans to stop paying its staff the living wage.
The Ellon-based business has reportedly told staff it will no longer pay the living wage from April in a move which it said was needed to ensure a return to “profitability” following a loss of more than £20 million last year.
BrewDog announced it would become a living wage employer in 2015.
Now, Ms Martin has asked for a meeting with the company to discuss their decision which will impact staff in its business in Aberdeenshire and across the UK.
In a letter to BrewDog owners James Watt and Martin Dickie, Ms Martin – who is a living wage employer – said: “I understand the challenges many employers like BrewDog are experiencing as a result of the cost of living crisis which has impacted right across the Scottish economy and beyond as well as the impact the coronavirus pandemic has had.
"Nevertheless, the decision to pay staff the UK’s national minimum wage of £11.44 rather than the living-based rate of £12 may impact constituents of mine.
“Being a living wage employer since 2015 has been a cornerstone of your company’s identity, one that has garnered justified praise and one that should be worn proudly.
“As you may be aware, research cited by Living Wage Scotland has shown that the living wage increases staff retention, and that more than 90 per cent of living wage employers have reported benefits from accreditation, 86 per cent of businesses believe it has enhanced their reputation as an employer, and 66 per cent say it helps them differentiate from competitors.
“I recall well my previous engagement with BrewDog on local issues, and my tour of your impressive premises in Ellon.
"As the MSP for the constituency in which your HQ is located, I would like to ask for a meeting with BrewDog to discuss the decision to not continue to be a living wage employer, and its possible implications for my constituents, at your earliest convenience.”
Commenting, Ms Martin said: “The impact of the coronavirus pandemic and the cost of living crisis has meant many businesses have had to make tough decisions, however, BrewDog has always shown a commitment to its staff being at the core of everything it does.
“With this in mind, I would like to meet with BrewDog to encourage a rethink on the decision to stop being a living wage employer.
"This decision will have a real impact on staff in hospitality who, like so many others, have already faced challenges in recent years.”
A BrewDog spokesman said of its decision to stop paying staff the living wage: "As a result of the changes we’re making – and despite unprecedented challenges in the hospitality sector – our staff outside London will be getting a 4.95 per cent increase in base pay, and crew currently working in London will be paid 4.5 per cent above the National Living Wage.
“We have always been fully committed to doing the best we can for our people, and our benefits package is far more generous than the industry average.
“Last year we gave over £350,000 to our bars team via our unique profit share programme.
“Our team also benefits from a unique bonus scheme which sees all crew members receive an additional £1 an hour for the month for surpassing customer service standards.
“In addition, we offer signature benefits like 'pawternity' leave and paid sabbaticals after five years of service.”
