BrewDog has pulled out of being a Living Wage employer after a decade of championing paying staff a voluntary higher rate based on the cost of living.
New starts at the Ellon craft beer firm will now instead be paid the national living wage – previously known as the minimum wage.
However, those still employed at the company will still receive the pay they were promised before the announcement.
A letter sent to BrewDog workers was shared on X by Unite the Union today.
It reads: “From January 3rd this year, new members of staff will be hired on the UK Government’s National Living Wage which currently stands at £10.42 an hour.
“All current staff rates will remain unchanged, and this has no impact on staff currently employed with us.
“The UK Government recently announced an increase to the National Living Wage from April 2024. It will rise 9.8% to £11.44 per hour nationally.
“From 1st April 2024, we will be using the new National Living Wage which will rise by nearly 10% as the benchmark to set pay in the UK for hourly paid crew in our bars.”
BrewDog respond to criticism
In a response to the criticism levelled at the company, BrewDog claimed that they are still “fully committed to doing the best for their people.”
A spokesman said: “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% increase in base pay, and crew currently working in London will be paid 4.5% 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.”
BrewDog CEO James Watt also claimed on X: “When you add up everything that we do for our people the value of the package is even more generous than Real Living Wage.”
Blog posts advocating for the Living Wage have now been scrubbed from the BrewDog website.
Living Wage is ‘cornerstone of BrewDog business’
However, Punks with a Purpose, a group of ex-BrewDog employees have slammed the decision.
They said: “BrewDog management’s decision to revoke a long-standing commitment to the real Living Wage proves that there is no principle too dearly held for them to abandon.
“The real Living Wage has been a cornerstone of BrewDog’s public identity for years.
“This real-terms pay cut for hard-working front line staff is directly opposed to BrewDog’s previous claim that “our crew are our most important resource – and giving them fair pay for the work they do is one of our core beliefs.”
“Furthermore, by adopting the government’s ambiguous “national living wage” terminology, it could be construed that BrewDog are attempting to disguise their move away from the real Living Wage.
“We stand in solidarity with BrewDog’s bar staff, who deserve better. Without us, we are nothing.”
BrewDog championed Living Wage in 2014
BrewDog introduced the Living Wage in 2014, branding the initiative Wage Against the Machine.
At the time, James Watt encouraged others to join the scheme in a “wakeup call for employers”.
He said: “We want this to be a wakeup call for employers, especially in the hospitality industry.
“What should be a respected profession is often still regarded as a university stop gap.
“No other bar division has ever looked beyond legal minimum wages or legislative parameters in committing to salary levels for staff.
“But we want this to provide a call to arms for the industry to pick up its feet and set new standards.”
Are BrewDog allowed to U-turn on living wage?
Despite criticism, SIRE Professor of Economics Keith Bender at the University of Aberdeen has claimed that BrewDog are “well within their rights” to change their wage policy.
Speaking to The P&J, he insisted that businesses are under immense pressure from wage rises.
He said: “The real living wage however is voluntary which only earns you the badge of being a living wage employer.
“However, BrewDog is well within its rights to change this as long as it pays the National Living Wage and it they are well within their rights to do so.
“This recent change definitely goes against their image, after purporting themselves as a living wage employer.
“The situation just signals how much huge pressure businesses and workers are under right now because of prices and inflation.”
“We know that workers have a cost of living crisis, but employers are having that as well. Many employers are being squeezed too.
“So some companies have to make those tough decisions but it does come at a cost.
“However, if BrewDog is trying to sell itself as a really good employer then moving away from the real living wage does bear a cost.”
Georgia Toffolo makes Christmas dash to Aberdeen with BrewDog boyfriend James Watt
