Craft beer giant Brewdog abandons real living wage for employees

Brewdog, a leading craft beer company, has stopped paying its staff the real living wage and will switch to the UK's national minimum wage of £11.44 an hour starting in April.

This figure is less than the £12 rate recommended based on living costs. The Aberdeenshire-based brewery, which reported a £24m loss last year, claims that this cutback is critical to their return to profitability.

Ex-employees have criticized the company for compromising on its values. In a letter to staff, Brewdog mentioned that tough choices were necessary to ensure financial health, despite positive sales during the holiday season.

Unite's Bryan Simpson criticized the timing during the cost-of-living crisis and pledged union support to challenge the decision. The real living wage, currently £12 outside London and £13.15 within, is set to rise with inflation on April 1st, contrasting with the marginal increase Brewdog's over-23 staff will receive to £11.44, while London workers will not see an increase above their present £11.95 rate.

Brewdog, which has boasted about being a living wage employer since 2015, deleted related content from its website. The Punks with Purpose group, formed after 2021 allegations of worker mistreatment, accuses Brewdog of abandoning its commitment to fair pay.

Despite a revenue rise to £321.2m in the last financial year, Brewdog blames its losses on higher costs for its beer, Punk IPA, and energy expenses at its Ellon plant. Co-founder James Watt had previously apologized following a documentary highlighting allegations of inappropriate behavior.

A Brewdog spokesperson stated that the pay changes will result in a 4.95% base pay increase for staff outside London and a payment for London staff 4.5% higher than the National Living Wage. They emphasized the company's efforts to treat employees well and pointed out that their overall benefits exceed the industry norm.