Coronavirus: John Lewis Partnership axes employees bonus because it slumps to £635m loss | Enterprise Information
John Lewis Partnership has confirmed it is not going to pay a employees bonus subsequent yr after it posted a half-year lack of £635m.
It’s the first time in additional than 60 years that staff on the employee-owned enterprise is not going to obtain a pay-out, which was final axed after in 1948 within the aftermath of the Second World Battle and remained at zero till 1953.
The partnership has like different retailers been battered by the pandemic – axing greater than a thousand jobs because it closes some shops for good.
Its John Lewis division retailer chain suffered a 10% fall in gross sales for the six months to July – in distinction to the partnership’s grocery store enterprise Waitrose, the place gross sales rose by almost 10%.
Dame Sharon White, chair of JLP, stated its worst-case state of affairs remained a 5% fall in gross sales at Waitrose and 35% at John Lewis for the total yr with the almost definitely final result a “small loss or a small revenue”.
Companions had already been warned in April that they have been unlikely to see a bonus in 2021 and Dame Sharon stated the board had now confirmed “that there is not going to be a bonus subsequent yr given our revenue outlook”.
She added: “I do know it will come as a blow to companions who’ve labored so onerous this yr.
“The choice on no account detracts from the dedication and dedication that you’ve proven.
“The partnership discovered itself in the same place in 1948 when the bonus was halted following the Second World Battle.
“We got here by way of then to be even stronger than earlier than and we’ll accomplish that once more.”
Dame Sharon stated that “outdoors of remarkable circumstances” JLP would anticipate to begin paying a bonus once more as soon as income exceed £150m and debt falls and that after income prime £300m it might anticipate the bonus to be at the very least 10% of wage.
JLP has been trimming its once-generous employees bonuses – which stood at 17% in 2013 – in recent times, with a reduce this yr to 2%.
However till now it has averted axing the pay-out utterly.