(Friday 14th June) The board of the UK’s biggest supermarket, Tesco, will today face a question at its annual general meeting (AGM), around why they can justify awarding their CEO Ken Murphy a staggering £10 million pay package while contract cleaners and security who keep their stores safe and clean are paid less than the real Living Wage.
The shareholder question, coordinated by responsible investment NGO ShareAction, follows the company’s profits skyrocketing from £882 million to £2.29 billion over the past year. The CEO’s pay has doubled from £4.4 million last year, making it 430 times as much as the average Tesco employee earns.
Dan Howard, Head of Good Work at ShareAction said: “In a world where Tesco are making a £2.3 billion profit a year, paying those who keep the stores safe and clean the real Living Wage shouldn’t have to be asked for – it should be automatic.
“Unfortunately, Tesco are dragging their feet on taking the right steps to pay its third-party contracted staff the living wage.
“Failing to recognise the financial hardship many of those who work for Tesco have faced during the cost-of-living crisis will damage Tesco’s reputation with both shareholders and customers.”
ShareAction is urging Tesco, alongside other major supermarkets in the UK, to accredit as a Living Wage employer, which would mean all staff including third-party contractors would be guaranteed the real Living Wage on an ongoing basis, and to set out a timeline for doing this.
The organisation is also calling on shareholders in Tesco who themselves pay the Living Wage use their voices to encourage the company to join them as Living Wage employers.
There is growing concern among the investment community about the systemic harm that low pay poses to the broader economy.
ShareAction’s Good Work investor coalition, representing $6.6 trillion in assets under management, is calling for movement across the retail sector toward real Living Wage accreditation.
Notes to editors
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 per hour in UK (up from £10.90) and £13.15 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 coalition 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.
