UK retailer Next wins appeal to pay warehouse staff higher basic pay

Sept 7 (Reuters) - British clothing retailer Next has won an appeal allowing it to keep paying warehouse workers more than sales consultants, it said on Monday, overturning a key part of a landmark equal pay ruling from two years ago.

The Employment Appeal Tribunal accepted that Next was justified in relying on market forces to pay warehouse operatives a higher basic pay than shop assistants, given recruitment and retention pressures that did not apply to store workers.

"The Appeal Tribunal's conclusion on basic pay is disappointing," Elizabeth George, partner at Leigh Day representing the shop workers, said, adding that the firm intends to appeal the decision.

The Tribunal, however, upheld the findings on night-time premiums, overtime premiums and paid rest breaks, the law firm said.

Next said it intends to appeal on some of the remaining terms of the case.

The ruling on basic pay overturns a key part of a 2024 Employment Tribunal decision in favour of over 3,500 current and former predominantly women shop workers, who argued they were paid less than warehouse operatives for work of equal value. 

After winning their six-year legal fight, the shop workers were entitled to back pay estimated at more than £30 million ($40.6 million), Leigh Day said in 2024.

"Next pays market rates in both its stores and its warehouses in order to recruit and retain staff," Leigh Day's George said.

"The market rate is higher in the predominantly male warehouse labour market, even though the work carried out in stores has already been found to be equal work."

Both the original Employment Tribunal and the Appeal Tribunal found no direct sex discrimination in its pay rates, the retailer said.

($1 = 0.7392 pounds)

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman and Jan Harvey)