BrewDog boss defends decision to pay new staff less than current employees

BrewDog has come under fire after cutting the wages of new staff members as the company backtracks on its real living wage commitment.

The Scottish brewery - which was famously rejected on Dragon's Den - has become a household name in the last 15 years, with millions regularly supping a Punk IPA or Elvis Juice.

It's become one of the most reputable producers of beer since being founded in Scotland, back in 2007.

But in a letter to staff today (10 January), BrewDog said some 'hard decisions' needed to be made after making a loss in 2023.

It said that the National Living Wage will now be adopted by the company for all new employees, instead of the independently calculated 'real' living wage.

In real terms, this means new staff outside London, aged 23 and over, will be paid £10.42 an hour, rising to £11.44 from 1 April. This is instead of the real living wage rate of £12.

London employees will keep their £11.95 an hour rate, which is less than the real living wage rate for London of £13.15.

The wages of current staff will be unaffected by the change.

Bryan Simpson, from Unite the union, said: "BrewDog has been paying the real living wage since 2015. To withdraw it now, during the most acute cost of living crisis in a generation is outrageous.

"We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions."

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James Watt, CEO of BrewDog, took to X to defend the decision, writing: "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.

"Furthermore, our UK team members, even with the latest announcement, will have had a 20.4% increase in wages since March 2022. 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. We are proud to be one of the Sunday Times Best Places to Work, and we were named a Top UK Employer by the UK Top Employers Institute."

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Fans of BrewDog have been split on the issue.

Responding to Unite's criticism on X, one user said: "Did you miss the part which mentioned the fact BrewDog made a trading loss and needs to cut spending?

"Or the fact bar staff are still receiving a nearly 10% increase in pay? And on top of that there will be no change in the benefits package? Unite or bankrupt hospitality?"

Another posted: "New hires will be paid the minimum wage, which itself is increasing in April. Current staff will remain unchanged. Current benefits package unchanged. Nobody got a pay cut here. I don’t see what this uproar is about."

A third user was a little more opposed to the change, writing: "If they won’t pay their workers correctly then we shouldn’t buy their beer."

And another backed him up, saying: "Oh well, I think it's time the general public starts to boycott all Brewdog products with immediate effect."

LADbible has contacted Brewdog for a comment.