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M&S, Next and JD Sports under pressure to pay staff real living wage
Major investors, including Axa and Scottish Widows, are backing shareholder resolutions calling on Next, M&S, and JD Sports to commit to paying staff a "real living wage."
Major investors, including Axa and Scottish Widows, are backing shareholder resolutions calling on Next, M&S, and JD Sports to commit to paying staff a “real living wage.”
The campaign, led by responsible investment group ShareAction, has gained the support of more than 100 individuals and eight institutional investors managing over £1tn in assets.
The Guardian reports that it aims to push retailers to ensure their employees earn at least £12.60 an hour outside London and £13.85 in the capital.
Currently, almost a quarter of UK retail workers—818,000 people—are paid below the rate set by the Living Wage Foundation, which accredits businesses that meet the standard.
Seven institutional investors, including Axa Investment Managers, Scottish Widows, Trust for London, the Greater Manchester Pension Fund, and Cardano Group, have co-filed a resolution at Next’s annual shareholder meeting on 15 May.
The proposal calls for Next to disclose how many of its workers and contractors are paid below the real living wage and conduct a cost-benefit analysis of adopting it as a minimum pay rate.
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ShareAction CEO Catherine Howarth said: “The UK’s biggest retailers are failing to support their workers with a real living wage, leaving hundreds of thousands of people in the sector struggling to make ends meet.”
Similar resolutions are being proposed at JD Sports and M&S’s annual meetings in July, with Friends Provident Foundation and Scottish Widows supporting both, while Cardano Group is backing the motion at JD Sports.
JD Sports currently pays all staff aged 21 and over at least the statutory minimum wage but does not offer additional pay in London, where living costs are higher. Next follows the same practice but provides slightly higher wages in London. M&S already pays the real living wage to direct employees but does not guarantee it for third-party contractors such as security and cleaning staff.
M&S told the outlet: “We strongly believe that our third-party contractors should also pay their employees fairly. We welcome open dialogue with all of our shareholders, including engagement with ShareAction.”
A JD spokesperson said: “All JD UK retail colleagues are compensated above the national living wage for those aged 21 and above, alongside a comprehensive benefits package available from the first day of employment.”
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