M&S defends bosses' bonuses amid union anger over staff 'pay cuts'

The shop workers' union has accused Marks and Spencer of further damaging relations with its staff over a bonus incentive scheme for top bosses.

The retailer, which has announced head office job cuts and looming store closures in recent months in the wake of a row with workers over pay and conditions, was accused by USDAW of treating workers with contempt.

The union's deputy general secretary said staff were particularly unhappy with a performance-related share award bonus for chief executive Steve Rowe that could earn him £1.8m on top of his salary in 2019.

It could also see other senior figures take home extra rewards of £1m plus, though they too must meet several targets in areas including profitability and efficiency over three years to net the full sums possible.

The union reported a resurgence of anger among store workers in response to the scheme, especially after the bruising row over the signing of new contracts, due to kick in next year, which cut pay premiums for working unsocial hours.

Paddy Lillis, from the union, said they were signed "under duress and the threat of losing out on the limited compensation package".

He added: "Others are still challenging the changes, despite the company's threat of dismissal next year, because they simply cannot see how they will make ends meet with a much lower income."

M&S confirmed last month that it was to axe 60 struggling clothing and home stores amid a greater focus on its successful food offering but it gave no details on where the changes would be made - adding that it hoped the impact on staff would be minimal.

Mr Lillis said: "I'm afraid there won't be much magic and sparkle for M&S staff this Christmas as they worry about whether it will be their job under threat in the new year."

But an M&S spokesman said: "The changes to pay and premiums, which come into effect from April, will reward our people in a fair and consistent way, simplify and modernise our business and make our colleagues amongst the highest paid in UK retail.

"Nobody need be worse off and the vast majority will receive higher total pay."