UK Retail Giants Face Shareholder Resolutions on Minimum Pay Rates
- Major investors back shareholder resolutions for M&S, Next, and JD Sports to pay real living wage
- ShareAction leads campaign with over £1tn in assets support
- Proposal calls for cost-benefit analysis of adopting real living wage
- M&S already pays direct employees the real living wage but not third-party contractors
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. 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. 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. 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.’
Factuality Level: 8
Factuality Justification: The article provides accurate information about the campaign led by ShareAction and the investors supporting it. It mentions the specific retailers involved, the proposed resolutions, and quotes from relevant parties. However, there is a promotional link at the end that may be seen as irrelevant to the main topic.
Noise Level: 4
Noise Justification: The article provides relevant information about major investors backing a campaign for retailers to pay their staff a real living wage. It includes specific details about the companies involved, the amount of workers affected, and the actions being taken by institutional investors. The article also quotes the CEO of ShareAction and representatives from some of the companies mentioned. However, it could provide more in-depth analysis or context on the impact of paying a real living wage on businesses and the economy.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses major investors backing shareholder resolutions for retailers like Next, M&S, and JD Sports to commit to paying a real living wage. This impacts the companies’ financial decisions regarding employee pay, which can affect their overall costs and potentially impact their financial performance. The campaign also involves institutional investors managing over £1tn in assets, indicating that there could be market implications if these resolutions are passed.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event in the text. The main topic discusses major investors backing shareholder resolutions for retailers to pay a real living wage, which has minor impact and is not an extreme event.
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