[UK] Sainsbury's and M&S face shareholder pressure over pay

This week in the UK, Sainsbury’s will be put under pressure as shareholders demand that the supermarket giant should pay all employees and contracted workers the national living wage, Grocery Gazette reports.

In January Sainsbury’s increased the minimum wage for its direct employees to £9.90 an hour outside London and £11.05 an hour for workers in the city, to surpass the national living wage. But campaign group ShareAction revealed that there has been no commitment to match the living wage in the long-term nor have pay rises been extended to contracted staff such as cleaners.

The campaign group will be present at the Big 4 grocer’s annual general meeting on 7 July 2022. It has backed the idea of pay increases at the grocer, along with Legal & General, HSBC and pension fund Nest.

Sainsbury’s is currently being challenged to commit to matching the basic living wage amidst the ongoing cost of living crisis, in the wake of agreeing a £3.8 million pay package and bonus package for boss Simon Roberts.

Shareholder advisory group PIRC has called on shareholders to oppose the remuneration package for bosses, including Mr Roberts’ overall pay deal.

The move comes as M&S reportedly faces additional challenges with shareholders against bumper bonuses paid to its former CEO Steve Rowe when the company has still not returned dividend payouts. As a result, shareholders will vote on this issue at its AGM.

“It is hugely exciting to see companies, especially mammoth UK names such as M&S and Sainsbury’s, being challenged thoroughly on a public stage. It is no longer enough for a company to pay lip service – shareholders want to see real, meaningful, change,” Lee Wild - head of equity strategy at interactive investor - said.

“The resolution, driven by ShareAction, comes at a time when the cost of living crisis continues to bite, and lower-paid workers across the UK are particularly vulnerable.“Therefore, a company of Sainsbury’s size and scale can reasonably be expected to give all staff the basic standard of living – and many other profitable companies will, or already are, facing pressure on this issue too,” Mr Wild added. 

Source: Grocery Gazette

(Link and quotes via original reporting)

This week in the UK, Sainsbury’s will be put under pressure as shareholders demand that the supermarket giant should pay all employees and contracted workers the national living wage, Grocery Gazette reports.

In January Sainsbury’s increased the minimum wage for its direct employees to £9.90 an hour outside London and £11.05 an hour for workers in the city, to surpass the national living wage. But campaign group ShareAction revealed that there has been no commitment to match the living wage in the long-term nor have pay rises been extended to contracted staff such as cleaners.

The campaign group will be present at the Big 4 grocer’s annual general meeting on 7 July 2022. It has backed the idea of pay increases at the grocer, along with Legal & General, HSBC and pension fund Nest.

Sainsbury’s is currently being challenged to commit to matching the basic living wage amidst the ongoing cost of living crisis, in the wake of agreeing a £3.8 million pay package and bonus package for boss Simon Roberts.

Shareholder advisory group PIRC has called on shareholders to oppose the remuneration package for bosses, including Mr Roberts’ overall pay deal.

The move comes as M&S reportedly faces additional challenges with shareholders against bumper bonuses paid to its former CEO Steve Rowe when the company has still not returned dividend payouts. As a result, shareholders will vote on this issue at its AGM.

“It is hugely exciting to see companies, especially mammoth UK names such as M&S and Sainsbury’s, being challenged thoroughly on a public stage. It is no longer enough for a company to pay lip service – shareholders want to see real, meaningful, change,” Lee Wild - head of equity strategy at interactive investor - said.

“The resolution, driven by ShareAction, comes at a time when the cost of living crisis continues to bite, and lower-paid workers across the UK are particularly vulnerable.“Therefore, a company of Sainsbury’s size and scale can reasonably be expected to give all staff the basic standard of living – and many other profitable companies will, or already are, facing pressure on this issue too,” Mr Wild added. 

Source: Grocery Gazette

(Link and quotes via original reporting)