Sainsbury’s is under pressure to pass a resolution to pay both its direct staff and contracted workers the living wage.
The supermarket chain is set to hold a vote at its annual shareholder meeting on July 7.
The Queen’s bank, Coutts & Co, and the Coal Pensions Board have joined other investors including HSBC and LGIM in calling for the living wage for all.
Sainsbury’s has already committed to paying the living wage to all its 171,000 direct employees across more than 1,400 stores in the UK, but has not made the same promise to contracted workers such as cleaners and security.
The living wage is calculated independently for the Living Wage Foundation charity, and currently stands at at least £9.90 an hour outside London or £11.05 in the capital.
More than half of the FTSE 100 are accredited living wage employers, but none of these are grocers.
On the other side of the argument, Shroders, which holds a 5.2% stake in the business, has sided with Sainsbury’s.
In a note, Schroders head of active ownership Kimberley Lewis said that it would “urge other shareholders to think carefully” before backing the resolution, as it “fails to fully consider both the business implications and potential wider stakeholder impacts.”
Sainsbury’s chair Martin Scicluna has warned that the move could impact the grocer’s ability to keep prices down, and to pay a dividend if more than £4bn of payroll is handed to external contractors.
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