Retail workers secure pay equality

In a landmark ruling, over 3,500 current and former store employees of the British retailer Next have successfully concluded a six-year legal battle for equal pay. The Employment Tribunal’s decision marks the first successful equal pay claim of its kind against a major national retailer, with the cost to Next estimated to exceed £30 million.

The tribunal found that Next unlawfully paid its predominantly female sales consultants lower wages than its warehouse operatives, who are mostly male. The difference in pay, which ranged from £0.40 to £3 per hour, led to significant salary losses for the sales consultants, averaging over £6,000 each.

This ruling entitles the claimants to back pay for up to six years, and their current contracts will be adjusted to ensure equal pay going forward. Additionally, they will receive paid rest breaks, and equal Sunday, night, and overtime premiums, aligning their benefits with those of warehouse staff.

The victory extends beyond just these workers. Leigh Day, the law firm representing the claimants, is also handling similar cases for over 112,000 employees at major supermarkets, including Asda, Tesco, Sainsbury’s, Morrisons, and Co-op. The success of the Next case is expected to bolster these ongoing claims, potentially reshaping pay practices across the retail sector.

Next had argued that market forces justified the pay difference, but the tribunal dismissed this defense, ruling that market rates alone are not a lawful justification for pay inequality when the work is of equal value. The judgment emphasised that employers must provide a non-discriminatory reason for such disparities.

Helen Scarsbrook, a 68-year-old employee with over 20 years at Next, was one of the lead claimants. She expressed relief and pride in the outcome, stating, "We did it! We have achieved equal pay for Next sales consultants. It has been a long six years, but today we can say we won."

Elizabeth George, the Leigh Day partner who represented the claimants, hailed the ruling as a significant step in addressing pay discrimination. She pointed out that the financial compensation the workers will receive is not a windfall but the pay they were always entitled to under the law.

This landmark ruling sets a powerful precedent in the fight for equal pay and could have far-reaching implications for the retail industry.