(Thursday 27th March) Three investor groups, co-ordinated by responsible investment NGO ShareAction, have filed resolutions at retail giants Next, M&S and JD Sports, calling for these companies to address the issue of low wages in their workforces.
As cost-of-living pressures and the soaring prices of essential goods and services continues to hit low paid workers the hardest, shareholders are calling for more transparency from retailers on how many of their staff are being paid below a real Living Wage based on the true cost-of-living.
115 individual investors are behind the resolutions, with 7 institutional investors managing over £1 trillion in assets, including Axa Investment Managers, Scottish Widows, Trust for London, the Greater Manchester Pension Fund and Cardano Group co-filing the resolution at Next. The resolution at M&S is being backed by Scottish Widows and Friends Provident Foundation, who are also supporting the resolution at JD Sports with Cardano Group.
Catherine Howarth OBE, Chief Executive at ShareAction, 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.
“Companies whose workforce earn less than a real Living Wage are ultimately harming the vitality and growth of the UK economy, with business models that put pressure on workers, their families and the state by adding to health and welfare costs.
“The long-term orientated, responsible investors backing these resolutions are calling on companies across the retail sector, including Next, M&S and JD Sports, for the information required to assess the business risks of low pay and the affordability and business benefits of the real Living Wage. This is a critical first step to better protect their staff and make our economy fairer and healthier.”
The Living Wage Foundation has reported that almost a quarter of UK retail workers – 818,000 people - are not being paid a real Living Wage. This is worse than other sectors and almost double the national average, despite evidence showing that implementing a real Living Wage has tangible business benefits, from increased productivity to reduced turnover.
Currently, JD Sports meets the National Living Wage requirement (£12.21 from April 2025), with no regional pay weighting to reflect differences in the cost of living in more expensive areas such as London. Next pays just its staff who are over 21 the National Living Wage, with some regional pay weighting for London, though this does not accurately reflect the difference in the cost-of-living in the area.
M&S has recently made a significant investment in its directly paid staff by paying a real Living Wage (£12.60), however it has not matched this commitment for its third-party contracted staff such as security guards and cleaners, who keep its stores safe and clean.
The three companies offer their senior executives significant pay packages, with the CEO of Next earning 226 times the pay of its average worker. The CEOs of M&S and JD Sports earn 200 and 88 times their average worker respectively.
The resolutions will go to a vote at the companies’ annual general meetings (AGMs), taking place in mid-May for Next and later in the summer for M&S and JD Sports. Investors have put forward the motions around disclosure on low pay to drive up standards across the entire sector, equipping investors with the workforce data they need to act as effective stewards of the companies they hold shares in.
Many of the investors backing the resolutions are part of ShareAction’s Good Work investor group representing £5.57 trillion in assets under management, which attended the AGMs of the UK’s biggest retailers last year to make the case for these businesses to end poverty pay.
Michelle Anderson, individual co-filer and agency worker, said: “I joined the resolution because everyone needs a proper Living Wage. How can employers expect employees to do their best work if they are struggling financially at home? These are big companies who should be role models to others of how to treat employees fairly. Everyone knows their names and if they don’t start acting fairly it will be widely known.”
Charlie Crossley, Investment Engagement Manager at Friends Provident Foundation, said: "Ensuring better pay for low-wage workers, including in retail, addresses the deep inequality in our society and helps build a fair economy. If more major companies committed to real Living Wage accreditation, it would empower thousands of workers to meet everyday costs and save for life’s critical moments. It would also advance workplace equality- key to maintaining social cohesion and long-term economic stability. Meaningful change requires sector-wide progress. That’s why investors are co-filing resolutions across multiple companies. These resolutions focus on transparency, giving investors a vital data foundation for the retail sector to move further towards fair pay for all workers.”
Manny Hothi, chief executive at Trust for London, said: “Too many Londoners are working hard and still trapped in poverty. Paying the London Living Wage is one of the simplest and most effective ways employers can help change that. And it’s not just the right thing to do – it makes business sense. A fair living wage helps employers attract and retain staff, and boosts productivity. For people it means dignity, security and the chance to build a better life. And for London, it means progress towards a fairer, more inclusive city.”
ENDS
Notes to editors
The Next resolution is being supported by Axa Investment Managers, Cardano Group, Epworth Investment Management, Friends Provident Foundation, Greater Manchester Pension Fund, and Trust for London.
The JD resolution is being supported by Cardano Group, Friends Provident Foundation and Scottish Widows.
The M&S resolution is being supported by Scottish Widows and Friends Provident Foundation.
The full wording for the resolutions and investor briefings with more information can be found here.
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. The new real Living Wage rates for 2024/25 are £12.60 per hour in UK (up from £10.90) and £13.85 per hour in London (up from £11.95).
The Good Work team at ShareAction harnesses the power of shareholders to tackle income inequality and in-work poverty. Our investor group engages some of the biggest publicly owned companies to ensure everyone has access to decent work. This means a guaranteed Living Wage and a secure contract that ensures workers have enough to meet their everyday needs.
ShareAction is an NGO working to shape a world where the financial system serves our planet and its people. We mobilise global investors to use their influence to drive up labour standards, tackle climate change, protect the natural world, and improve people’s health. We push policymakers to ensure the financial system is working in the best interests of society. We work with people to create a movement for change. Visit shareaction.org or follow us @ShareAction to find out more.
