BrewDog is under fire after it was revealed it will no longer pay staff the real living wage.
The Scottish brewery and pub chain sent a New Year letter announcing new employees would be hired with the legal minimum wage, while current workers will receive less than the real living wage from April.
Unite union, which shared a copy of the letter on social media, called the move "outrageous" and asked whether it would feature in the newly- announced BrewDog film.
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Bryan Simpson, lead organiser of Unite Hospitality, said: "BrewDog have been paying the real living wage since 2015. To withdraw it now, during the most acute cost of living crisis in a generation, is outrageous.
"We are already working with our BrewDog members across the country to collectively challenge this awful decision and force the senior management of the company to do the right thing by the workers who have made them millions."
🚨BREAKING 🚨@BrewDog have written to their workers telling them that they will no longer be paid the *real* living wage from April with the rate being removed for new starts with immediate effect.
— Unite Hospitality (@FairHospitality) January 10, 2024
We wonder whether this will feature in the new film about the company? pic.twitter.com/4UEqoGTexK
The Ellon-based brand, best known for its Punk IPA beer, said new staff would be hired on the legal minimum wage of £10.42 an hour for those aged 23 and above, which is also known as the National Living Wage.
From April 1, employees outside London will have a pay increase to £11.44 an hour. However, that will be below the new real living wage of £12 an hour.
Responding on X, formerly Twitter, BrewDog CEO and co-founder James Watt said: "As a result of the changes we’re making – and despite unprecedented challenges in the hospitality sector – our staff outside London will be getting a 4.95% increase in base pay, and crew currently working in London will be paid 4.5% above the National Living Wage.
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"We have always been fully committed to doing the best we can for our people, and our benefits package is far more generous than the industry average. Last year we gave over £350,000 to our bars team via our unique profit share programme.
"Our team also benefits from a unique bonus scheme which sees all crew members receive an additional £1 an hour for the month for surpassing customer service standards. In addition, we offer signature benefits like 'pawternity' leave and paid sabbaticals after five years of service."
Mr Watt said BrewDog is proud to be one of the Sunday Times Best Places to Work, and be named a Top UK Employer by the UK Top Employers Institute.
It comes just a week after Mr Watt announced an "amazing new movie" about the company named Underdogs: The Rise of BrewDog.
The CEO said the film would chart the highs and lows of the business' journey, as well as a "healthy dose of controversy" along the way.
Read more: Brewdog boss apologises after ex-employees write open letter
In 2021 Mr Watt was accused of presiding over a "culture of fear" in an open letter from almost 300 staff detailing a toxic work environment at BrewDog.
And the following year, he faced further accusations of inappropriate behaviour by 15 former staff in a BBC Disclosure programme.
Mr Watt said "mistakes" had been made that "detrimentally impacted" the work culture.
And in a later interview, he said allegations had been "taken out of context" or "blown way out of proportion".
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