Retail giants M&S, Sainsbury's, and JD Sports to face inquiries regarding budgeted wages for shop employees
In the world of retail, the issue of employee wages has been a hot topic recently, with several major companies facing scrutiny over their pay practices. This week, ShareAction, a pressure group focused on promoting responsible business practices, will attend the annual general meetings (AGMs) of Marks & Spencer, JD Sports, and Sainsbury's to challenge them over low pay.
Marks & Spencer has come under fire for not committing to pay its third-party contracted staff, including cleaners and security guards, the real living wage, despite making profits of £380 million last year. The company's spokesperson announced that this year, they made their biggest ever investment in retail pay, amounting to £89 million, with a minimum wage of at least £12 per hour, in line with the real living wage. However, it seems that this investment does not extend to their third-party realtors.
Sainsbury's, on the other hand, pays its colleagues the real living wage both nationally and in London. However, the company's sales growth has slowed down, with a 3% increase in the 16 weeks to 22 June, which is lower than the previous quarter's growth.
The Living Wage Foundation calculates the real living wage to be £12 an hour nationally and £13.15 in London. The pressure group wants the retailers to pay their staff this wage instead of the government's legal living wage.
Simon Roberts, Sainsbury's chief executive, is set to receive almost £5 million in pay this year, more than 200 times the earnings of the average employee at the supermarket chain. This stark contrast between executive pay and employee wages has been a point of contention for ShareAction.
Tesco, Greggs, Next, and B&Q owner Kingfisher were also targeted by ShareAction earlier this year. The issue of inadequate pay is widespread among the major retailers, and ShareAction's representatives will visit the AGMs of these companies this fall to confront and challenge them about the low wages of their employees.
At JD Sports' AGM on Thursday, ShareAction's representatives will join those at Sainsbury's to challenge the boards about the low wages of their employees. The events promise to be significant moments in the ongoing discussion about fair pay in the retail sector.
