Brewdog Slashes New Staff Wages Amid Cost of Living Crisis
Craft Beer Giant Ditches Real Living Wage
Brewdog has shocked fans and workers by scrapping its real living wage policy for new hires. Starting April, the Aberdeen-based brewer will pay new employees only the UK government’s national minimum wage of £11.44 per hour — well below the £12 real living wage tied to the cost of living.
The controversial move aims to help Brewdog recover from a staggering £24 million operating loss recorded last year. Former staff are fuming, accusing the company of abandoning its 2015 pledge to pay a voluntary living wage.
Unite Hits Out: ‘Outrageous Pay Cut at Worst Time’
Bryan Simpson, hospitality organiser for Unite, slammed Brewdog’s decision. “To withdraw the real living wage now, during the most acute cost of living crisis in a generation is outrageous,” he said.
The union is rallying Brewdog employees to fight back, challenging the pay cut collectively. Despite Brewdog’s claim that staff over 23 get a pay rise from £10.90 to £11.44, the increase still falls short of the basic living wage benchmark.
Brewdog’s Past Promises Disappear
Mystery deepens after Brewdog’s blog posts touting its living wage employer status were wiped from the company website. Campaign group Punks with Purpose, formed in 2021 amid allegations of staff mistreatment, called out the brewer for delivering a real-terms pay cut and questioned its commitment to fair pay.
Financial Struggles and Apologies
Despite a healthy £321.2 million revenue in 2022-23, rising production and energy costs hammered Brewdog’s profits. Co-founder James Watt apologised last year following a BBC exposé revealing inappropriate behaviour allegations.
A company spokesperson defended the pay changes, highlighting a 4.95% base pay rise for most staff and London employees earning 4.5% above the National Living Wage. Brewdog insists its benefits package still outshines industry standards.
