Important Hourly Pay Structure Changes

The face of retail is rapidly evolving due to changes in consumer shopping behavior. Providing an exceptional customer experience is essential to retain our current customers and to attract new shoppers.

These changes require the Exchange to execute innovative compensation programs to recruit and retain high performing customer-focused talent. The Exchange’s hourly associates are on the front lines, providing an exceptional customer experience.

Strengthening the link 

The objective of the Exchange’s hourly compensation program is to design and carry out hourly pay, job design and performance management strategy that improves pay perception, market competitiveness, strengthens the link between pay and performance.

The new grading structure can provide consistent and adequate pay differentiation between the grades and better support constant changes in operations while aligning with industry-best practices.

The change within NF 1 levels is considered a consolidation action, not a demotion or a promotion.

Associates will see no adverse impact on their pay. NF 1 level will be the entry level to retail operation, and the new NF 2-2 will be reserved for NF 2-1 level associates.

Sunday and second-shift pay

Premium pay for second shift or Sunday work is less commonly offered in the retail environment.

Sixty-seven percent of retailers in the AON Hewitt Pay Practice survey said they do not offer second shift or Sunday premium, suggesting that a higher base pay is valued more by associates because all associates don’t receive premium pay when schedules change.

In line with industry-best practices, the Exchange will implement an across-the-board base pay $0.25 per hour increase to all non-bargaining associates and those who are part of UFCW, LIUNA, RWDSU, Teamster, IBEW, CWA bargaining unit NF associates.

Average 2.2 percent hike

On Oct. 21, the Exchange will discontinue second shift and Sunday premium, and implement the pay increase, which will provide an average 2.2 percent increase to these NF associates regardless of scheduled shift or day. The increase is in addition to the average 3.5 percent annual performance increase given to NF associates.

Permanent increases to base pay have various benefits to associates throughout their employment, such as vacation leave payouts or retirement “high three salary” calculations where second shift and Sunday premiums would have no impact. 

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