[UK] Next resisting call from investors to reveal number of staff paid below living wage

In the UK, the high street retailer Next is opposing a call from major investors at its annual meeting later this week to reveal how many of its 40,000 staff are paid below the real living wage of £12.60 per hour, MSN reports.

A group of institutional shareholders - including Axa, Scottish Widows and the Greater Manchester Pension Fund - that manage over £1 trillion of assets are backing the resolution, which aims to increase transparency and improve conditions for shop floor workers.

The real living wage is higher than the national minimum wage. It is set independently based on the cost of living. There is a separate, higher rate of £13.85 for London.

Over 15,000 businesses are reportedly signed up to the voluntary scheme, including half of the FTSE 100 index.

Catherine Howarth - chief executive of campaign group ShareAction, which tabled the motion - said, “The financial rewards of Next's striking commercial success haven't been shared with its workforce.” 

Clare Richards - from the Church of England Pensions Board, which also backs the resolution - said “Greater disclosure by Next of its pay practices would demonstrate how the company seeks to balance the needs of their stakeholders and lowest paid workers.”

The UK’s retail and wholesale sector is one of the largest employers of low-paid workers, with almost a quarter of its 3.5 million workers paid below the real living wage.

“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,” Ms Howarth said.

The investors’ demand comes as companies scramble to cope with the Government's £25 billion employers' National Insurance increase, reportedly dubbed a 'tax on jobs' by critics.

The national minimum wage has also recently risen to £12.21 an hour, giving more than 3 million low-paid workers a 6.7 per cent pay rise.

The minimum wage for workers aged 18 to 20 also increased, going from £8.60 to £10 an hour, a rise of more than 16 per cent and the largest increase on record.

Next is expected to make more than £1 billion this year. The retailer reportedly opposes the resolution at the meeting because of the “significant cost implications”.

It is also said to want “flexibility” to set its own pay rates, rather than outsourcing the decision to a third party.

Setting wage rates was “a fine balance between the interests of investors (who are ultimately savers and pension funds), consumers and employees (many of whom are also savers and investors),” Next added.

ShareAction is also targeting Marks & Spencer and JD Sports with a similar resolution at their AGMs in July.

Next's AGM will be held on May 15.

Source: MSN

(Quotes via original reporting)

In the UK, the high street retailer Next is opposing a call from major investors at its annual meeting later this week to reveal how many of its 40,000 staff are paid below the real living wage of £12.60 per hour, MSN reports.

A group of institutional shareholders - including Axa, Scottish Widows and the Greater Manchester Pension Fund - that manage over £1 trillion of assets are backing the resolution, which aims to increase transparency and improve conditions for shop floor workers.

The real living wage is higher than the national minimum wage. It is set independently based on the cost of living. There is a separate, higher rate of £13.85 for London.

Over 15,000 businesses are reportedly signed up to the voluntary scheme, including half of the FTSE 100 index.

Catherine Howarth - chief executive of campaign group ShareAction, which tabled the motion - said, “The financial rewards of Next's striking commercial success haven't been shared with its workforce.” 

Clare Richards - from the Church of England Pensions Board, which also backs the resolution - said “Greater disclosure by Next of its pay practices would demonstrate how the company seeks to balance the needs of their stakeholders and lowest paid workers.”

The UK’s retail and wholesale sector is one of the largest employers of low-paid workers, with almost a quarter of its 3.5 million workers paid below the real living wage.

“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,” Ms Howarth said.

The investors’ demand comes as companies scramble to cope with the Government's £25 billion employers' National Insurance increase, reportedly dubbed a 'tax on jobs' by critics.

The national minimum wage has also recently risen to £12.21 an hour, giving more than 3 million low-paid workers a 6.7 per cent pay rise.

The minimum wage for workers aged 18 to 20 also increased, going from £8.60 to £10 an hour, a rise of more than 16 per cent and the largest increase on record.

Next is expected to make more than £1 billion this year. The retailer reportedly opposes the resolution at the meeting because of the “significant cost implications”.

It is also said to want “flexibility” to set its own pay rates, rather than outsourcing the decision to a third party.

Setting wage rates was “a fine balance between the interests of investors (who are ultimately savers and pension funds), consumers and employees (many of whom are also savers and investors),” Next added.

ShareAction is also targeting Marks & Spencer and JD Sports with a similar resolution at their AGMs in July.

Next's AGM will be held on May 15.

Source: MSN

(Quotes via original reporting)