(Tuesday 1st July) Reacting to the results of the vote for the low pay resolution at M&S’s annual general meeting today, Catherine Howarth OBE, Chief Executive at ShareAction said:
“Investors have made their expectations clear: they want more transparency on pay from M&S. This is a critical step M&S can take to build trust in its business and its brand with investors and customers alike.
“M&S already pays its direct employees a real Living Wage and it could lead the sector in making sure that all its workforce, notably its cleaners, who are essential to keeping the business running, are paid a real Living Wage across its operations.
“The level of support for the resolution means the company is now obliged, as a signatory of the Corporate Governance Code, to show how it is acting on shareholders’ concerns. We look forward to those exchanges and to seeking a positive outcome for all parties through the process.”
Roxana Khan-Williams, Head of Campaigns at Organise said: “More than 23,000 M&S workers and customers have made it clear: it’s simply not right that the people who keep stores running, like cleaners, are struggling to afford the basics, while the CEO takes home £7.1 million.
“We have heard from staff skipping meals, and from customers who feel betrayed by a brand they thought stood for fairness. Over 90% of shoppers we surveyed said they were angry or disappointed that M&S doesn’t pay everyone who works for M&S the real living wage. More than half say they’ll shop elsewhere until this is fixed.
“Given the result at today’s AGM, shareholders are clearly aligned with M&S workers and customers, who believe it's time for M&S to live up to its values and pay every worker, whether directly employed or subcontracted, a real living wage.”
ENDS
Notes to editors
The results for the vote around the resolution were as follows: 30.7% in favour, 69.3% voted against. It follows an identical resolution filed at Next which achieved 26.9% of votes in favour and 73.1% against.
23,000 customers and staff signed a petition facilitated by Organise, which was handed into the board at the AGM, calling on the company to pay all its staff a real Living Wage.
A poll commissioned by ShareAction conducted by Survation revealed that 73 per cent of M&S shoppers would stop shopping at the company or think less of it if it emerged they weren’t paying all their staff the real Living Wage.
More information around the resolution can be found here.
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 working with US-based The Shareholder Commons on a sector-wide “guardrail” approach to investor engagement, encouraging investors to apply minimum standards on pay disclosures to all companies in the retail sector.
