Major UK retailers JD Sports, M&S and Sainsbury’s are under renewed scrutiny from investors over low pay and wage transparency as their annual general meetings (AGMs) approach this week.
Responsible investment group ShareAction is filing shareholder resolutions at M&S and JD Sports, calling for detailed disclosures on how many employees earn below the real living wage — currently £12.60 nationally and £13.85 in London for those aged 21 and over.
ShareAction is also pressing for transparency on pay for third-party contractors, a growing concern in the retail sector.
At Sainsbury’s AGM on Thursday (3 July), shareholders plan to directly question the board about pay policies and the feasibility of paying the real living wage to all staff, including contractors.
While M&S pays its direct employees at least the real living wage, it says third-party contractors set their own pay and insists the majority earn at or above the threshold. JD Sports faces criticism for only meeting legal minimum wage requirements and a lack of clarity around contractor wages.
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M&S’s board recommends opposing the resolution, citing more than £285m invested in employee pay since 2022 and a 26% increase in its standard hourly rate. JD Sports similarly advises shareholders to reject the proposal, highlighting its investments to improve pay and benefits over the last three years.
Pensions & Investment Research Consultants, Europe’s largest independent shareholder advisory firm, supports the resolutions at both companies, saying further transparency and wage commitments for contracted staff are needed to manage risk and build resilience.
ShareAction chief executive Catherine Howarth said: “Votes in support will endorse good governance and risk management whilst recognising the workers who keep these businesses running.”
M&S spokesperson said: “We offer an industry-leading benefits package alongside real living wage pay for direct employees and ensure most third-party contractors are paid fairly. We believe responsibility for pay should remain with contractors themselves.”
A JD Group spokesperson told Retail Gazette: “Over the past three years, we have invested more than £75m including removing the age banding and enhancing the remuneration and benefits of our lowest-paid UK colleagues. Our highly competitive UK colleague package is specifically designed to address the needs of our predominantly young workforce.
“We remain committed to providing fair wages and acting in the best interests of all stakeholders and have been engaging with shareholders ahead of our AGM on 2 July to outline our holistic approach to reward and benefits and are grateful for their supportive response. We are proud of our role as one of the UK’s largest employers of young people, often giving them their first jobs and teaching them skills and disciplines that stand them in good stead for the rest of their working lives, including long-term opportunities with JD.”
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