Activists demand major UK retailers like M&S and Sainsbury's to commit to real Living Wage

Major UK retailers are under the microscope as shareholder activists from ShareAction target household names like Marks & Spencer, JD Sports, and Sainsbury's over their wage policies amidst cost-of-living concerns. ShareAction is poised to confront these retail giants at their upcoming annual general meetings (AGMs) this week, pressing them on the issue of low pay and the potential damage it could inflict on their reputations and long-term prospects.

The Government's statutory living wage stands at £11.44 per hour as of April, yet the Living Wage Foundation advocates a "real Living Wage" of £12 nationwide and £13.15 in London, which companies can choose to adopt voluntarily. Marks & Spencer is bracing for tough questions at its AGM on Tuesday regarding its reluctance to commit to paying its third-party contracted workerssuch as cleaners and security personnelthe real Living Wage, despite boasting profits of 480 million dollars (£380 million) last year.

ShareAction is also pushing for the retailer to pledge an ongoing commitment to the higher wage for all its employees. Later in the week, the spotlight will shift to JD Sports and Sainsbury's during their respective AGMs on Thursday, where they too will face calls to implement the real Living Wage for all staff members.

Additionally, Sainsbury's, with a profit tally of £277 million in the previous financial year, will be urged to ensure that its contracted workers, who maintain store cleanliness and safety, receive the real Living Wage.

Simon Roberts, the chief executive of the supermarket chain, is poised to pocket nearly £5 million in pay this year, a staggering 212 times more than the average employee's earnings, as reported by the High Pay Centre.

Dan Howard, head of good work at ShareAction, commented: "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."

ShareAction has also made its presence felt at the shareholder meetings of other leading retailers earlier this year, advocating for the Living Wage campaign aimed at high street workers, targeting giants like Tesco, Greggs, Next, and B&Q's parent company Kingfisher.

Catherine Howarth, chief executive at ShareAction, stated: "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."

Sainsbury's has declared it pays its colleagues the real Living Wage across the nation and in London, noting that the vast majority of third-party contractors working in stores, depots, contact centres, and store support centres already receive wages at or above this level.

An M&S spokesperson proudly stated: "This year we made our biggest ever investment in retail pay £89 million to at least £12 per hour, in line with the real Living Wage, as well as investing in improved maternity and paternity policies as part of our broader reward package."

"Since March 2022 we have increased our standard hourly rate by more than 26 percent significantly ahead of inflation."

The spokesperson added, "Our third-party contractors, as separate businesses, set their rates independently but they must comply with our ethical standards."

"We continue to have constructive, active dialogue with ShareAction and wider stakeholders, most importantly our colleague representative network BIG, with the feedback we are given informing the decisions we make on pay."