Blow for hundreds of John Lewis Partnership staff as its annual bonus is axed for first time in 67 years

Hundreds of John Lewis staff in Peterborough were left disappointed today after the retailer axed its annual bonus payout.
Happy day as John Lewis staff in Peterboroug celebrate their 17% bonus in 2013.  ENGEMN00120130703094547Happy day as John Lewis staff in Peterboroug celebrate their 17% bonus in 2013.  ENGEMN00120130703094547
Happy day as John Lewis staff in Peterboroug celebrate their 17% bonus in 2013. ENGEMN00120130703094547

The Partnership, which employs about 500 staff across its John Lewis store in Quewensgate, and at Waitrose, in Mayor’s Walk, announced the bonus would not be paid for the first time since 1953.

The announcement came as the retailer revealed a £635 million pre-tax loss for the six months to July 25 after higher costs offset a one per cent rise in sales.

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Excluding one-off costs, including a £470 million write-down in the value of its stores. the group’s losses for the half year came in a £55 million.

Chairman Dame Sharon White said: “I know this will come as a blow to partners who have worked so hard this year.

“The decision in no way detracts from the commitment and dedication that you have shown.”.

The bonus has been a much anticipated highlight for staff at John Lewis but its value has diminished over the years.

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Seven years ago, staff at the Peterborough stores celebrated a 17 per cent bonus but that had fallen to 15 per cent the following year and 10 per cent four years ago.

The celebrations started to disappear aftere that and this year the bonus came in at two per cent.

However, there was a glimmer of hope for staff as John Lewis and Partners chairman Dame Sharon White announced the bonus would be restored when the profits hit £150 million and its debt ratio fell substantially.