Sainsbury’s prepares for shareholders’ reaction to pay when facing investors at its annual general meeting
- The grocery store faces calls to independently pay decent wages for all workers
- Share Action wants the supermarket to pay £ 9.90 across the UK and £ 11.05 in London
- Activist Rachel Hargreaves said “business case is compelling”
By Archie Mitchell for the Daily Mail
Posted: 21:50, July 3, 2022 | Updated: 22:27, July 3, 2022
Sainsbury’s is gearing up for a reaction from shareholders on pay when it faces investors at its annual general meeting on Thursday.
The UK’s second largest grocery store faces calls to pay the independently established decent wage for all staff and hired workers.
The responsible investment organization Share Action has tabled a resolution calling for the supermarket to commit to paying the sum, currently £ 9.90 per hour across the UK and £ 11.05 per hour in London.
Demand: UK’s second-largest grocery store faces calls to pay independently established decent wage for all staff and hired workers
Share Action campaign director Rachel Hargreaves said that in addition to being the right one, “the business case is compelling.” She said: “There is no excuse for a highly profitable company with multi-million pound executive salaries to refuse to guarantee all its staff a basic standard of living.” Sainsbury’s has urged shareholders to reject the motion because it wants to manage its own payroll. This year he has spent £ 100 million raising salaries and was the first major retailer to pay the real decent salary.
President Martin Scicluna has argued that Sainsbury’s pays more than rival supermarkets.
In a letter to shareholders, he said: “We believe it is right to make independent decisions, rather than having them determined by a separate external body.”
ISS and Glass Lewis shareholder advisers have also advised shareholders to reject the motion. It requires 75% support to approve it, but even a 20% vote would force Sainsbury’s to hold talks with shareholders on the issue.
But the motion has won high-profile supporters, setting the stage for a rebellion. In recent weeks, insurer Aviva, which has a 0.3% stake in Sainsbury’s worth £ 15 million, said it would support the motion. Other supporters include Fidelity International, HSBC Asset Management and Queen’s Bank, Coutts.
The confrontation comes a month after Sainsbury’s boss Simon Roberts faced a backlash after his salary tripled to £ 3.8 million, 183 times more than an average Sainsbury’s employee.
Danny Magill of The Equality Trust said: “Low wages drive inequality that is slowing economic growth and fueling instability, posing material risks to investors. We hope investors will support this resolution.”
Sainsbury’s posted profits of £ 730 million for the 12 months to March 5th.
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