Only executives and senior management will be exempt from the August bonus paid by Lloyds Banking Group to employees.
Lloyds Banking Group (LBG) has provided tens of thousands of employees with a one-time payment of £1,000 to assist with growing living expenses.
The largest domestic lender stated that the funds would be accessible in August.
It is understood that CEOs and senior managers will not be subject to the requirement.
Lloyds was under pressure to help its lowest-paid employees cope with soaring inflation; in May, Unite demonstrated outside the company’s annual general meeting in Edinburgh after its members voted against the company’s pay offer.
The union said at the time that Lloyds had rewarded shareholders with dividend payouts based on record earnings while ignoring the needs of bank branch and call center employees.
It lashed out after a survey it conducted revealed that several employees complained they would not be able to adequately heat their houses due to significant increases in energy costs.
Others, according to Unite, were jeopardizing their retirement plans by ceasing pension contributions in the face of rising inflation, which is at a 40-year high.
The effort at Lloyds is part of a larger union fight for wage increases by the rate of inflation to counteract the rising cost of living. This is demonstrated by the likelihood of the largest rail strike since 1989.
However, the likelihood of such awards has concerned the Bank of England, which fears that hefty pay awards would ultimately drive inflation.
Approximately 99.5% of the group’s workforce, or 64,182 employees, will get the payment.
The staff memo read: “As the growing cost of living continues to impact our employees and customers, we’ve been evaluating the evolving inflation prognosis and contemplating how we may better assist you.
“In light of this, I wanted to let you know that all of our employees in grades A through G will receive a one-time payment of £1,000 in their August pay.
This support is intended to assist you during these unpredictable economic times and is in addition to the actions we’ve made to strengthen the support available to you and our customers.
Sharon Graham, general secretary of Unite, responded: “Collective action by Unite members has placed urgently needed funds in the pockets of frontline employees.
“This victory for Unite’s LBG pay campaign is a significant step toward altering the pay structures of the bank.
Staff will appreciate the £1,000 incentive, but there is still a long way to go to eliminate poor pay in one of the most profitable sectors of the country.
