4/10/2008 9:52:00 AM
Carphone staff pay dispute
Carphone Warehouse’s store staff have criticised their latest pay review, arguing that it is a ‘derisory improvement’.
Following an annual pay review, Carphone bosses sent letters to staff last weekend informing them that they would receive a 2.5% increase to their basic pay.
However, staff told Mobile they were expecting a significantly higher increase than what some described as ‘no more than a cost-of-living increase’, level with the UK rate of inflation.
Staff said that while Carphone has a generous commission structure – up to double the industry average – it is becoming harder to reach.
Carphone’s basic wage structure is among the lowest in the mobile phone industry.
One employee said: ‘The 2.5% increase, on what was already a feeble basic pay package, is an insult to staff.’
Carphone UK CEO Andrew Harrison (pictured) said: ‘We’re having a major review on pay in the coming months. This is a holding position. It’s more money in a difficult economic climate.’
Harrison said Carphone was ‘the most lucrative place to work in mobile retail’ in terms of total earnings.
Carphone introduced parity on commissions for upgrades and new connections in February this year.
The retailer cut commissions for new contracts but increased the pay for upgrades.
One store manager added: ‘Commission is becoming harder and harder to get. Everyday they ask more and more from us and pay less and less.’
Mobile’s annual salary survey in February revealed Carphone’s basic salary range is lower than any other retailer.
The survey found Carphone’s basic salary range to be between £9,500 and £14,500, compared with £12,000 to £16,000 at Phones 4u.
With the 2.5% increase, Carphone’s basic salary range will increase to between £9,737.50 and £14,862.50.
Would you prefer a higher basic wage or more commission? TEXT 07786 202040