Next refuses to reveal how many workers are paid below real living wage
Next is resisting calls from its major investors to report on how many of its 40,000 workers are paid under the real living wage of £12.60 per hour at its annual meeting later this week.
Next is resisting calls from its major investors to report on how many of its 40,000 workers are paid under the real living wage of £12.60 per hour at its annual meeting later this week.
Scottish Widows, Axa, and the Greater Manchester Pension Fund are among a group of institutional shareholders who manage more than £1trn of assets backing the resolution, This is Money reported.
It comes as Next’s latest annual report showed its chief executive Lord Wolfson was paid £4.7m last year as the retailer’s profits topped £1bn.
Catherine Howarth, CEO of ShareAction, which tabled the motion, said: “The financial rewards of Next’s striking commercial success haven’t been shared with its workforce.”
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She added: “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.”
The retailer has opposed the resolution at its meeting on 15 May due to its “significant cost implications”.
It also said it wanted “flexibility” to set its own pay rates, instead of outsourcing the decision to a third party.
Next explained that setting its pay rates was “a fine balance between the interests of investors (who are ultimately savers and pension funds), consumers and employees (many of whom are also savers and investors)”.
It comes after Next raised its profit forecast last week, after warmer spring weather drove stronger-than-expected sales during the first quarter.
The retailer reported a 11.4% rise in the 13 weeks to 26 April — ahead of the 6.5% increase it had forecast — delivering a £55m sales boost.
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