Yahoo Finance UK high street faces shareholder backlash over low pay
UK high street shops like Sainsbury’s, Marks & Spencer and JD Sports are facing a shareholder backlash after failing to commit to pay all their staff and third-party contractors a real living wage.
Big financial names backing a campaign against low pay include LGIM, HSBC Asset Management, Aviva, and Scottish Widows. In total, the institutions have a total of $6.6 trillion (£5.2 trillion) in assets under management.
The campaign is being led by responsible investment group Shareaction, who plan to push back against a variety of retailers over their wages throughout the year, including Tesco, Greggs, Next and B&Q owner Kingfisher.
Today, Shareaction will be questioning M&S at the company’s annual general meeting as to why it has not committed to pay its third-party contracted staff, like cleaners and security guards, a real living wage, despite making a profit of over £700m last year.
The group will also call on the supermarket, which raised its CEO’s pay by 75 per cent this year, to accredit to pay all its staff the real living wage on an ongoing basis.
Then on Thursday, the group will urge both JD Sports and Sainsbury’s at their respective AGMs to ensure their staff and all third-party contractors are being paid the real living wage.
Sainsbury’s CEO Simon Roberts is set to receive almost £5m in pay this year, 212 times as much as the supermarket’s average employee, Shareaction noted.
Established by the Living Wage Foundation, the real living wage is the minimum hourly rate necessary for workers to afford housing, food, and other basic needs, now sitting at £12 per hour in the UK and £13.15 per hour in London.
Dan Howard, head of good work at Shareaction said: “Inadequate pay is a widespread issue in the retail sector, leaving many workers struggling to make ends meet, and with all sorts of negative knock on effects on businesses from high turnover rates to low productivity.
“It’s in these businesses’ interests to pay their staff a real Living Wage, which allows workers to afford the basic goods and services they need, from housing to food to bills.
“Crucially, we need to see companies accrediting as Living Wage Employers, which means they commit to paying all their staff a real Living Wage, including third-party contractors, now and into the future.”
Catherine Howarth, chief exec of Shareaction, who will be asking one of the questions at M&S’s AGM, added: “The cost-of-living crisis has made it clear that pay inequality and in-work poverty are a blight on our society and urgently need tackling.
“Businesses paying the real living wage is vital to protect living standards for low-paid workers and serves the long-term interests of businesses, investors, and society.
“This is why we are calling on investors to use their influence as shareholders to steward companies in the right direction and ensure all workers receive the real living wage.”
M&S and JD Sports have been contacted for comment. Sainsbury’s declined to comment.
