A coalition of major investors managing over £1tn in assets is rallying behind a campaign to pressure UK retail giants into paying a “real living wage” to their workers. The shareholder resolutions, backed by groups such as Axa Investment Managers, Scottish Widows, and others, are set to be presented at Next’s annual meeting on 15 May, with similar motions scheduled at JD Sports’ and M&S’s meetings in July.
The proposed resolution calls on Next to report the number of workers, including contractors, earning below the real living wage and to analyze the potential costs and benefits of adopting it as the new minimum pay level. Advocates argue that ensuring fair pay is crucial not only for workers’ financial wellbeing but also for boosting workplace equality and long-term economic stability.
Campaign group ShareAction, leading the effort, emphasized that nearly a quarter of UK retail workers approximately 818,000 people currently do not receive a real living wage as defined by the Living Wage Foundation. This is in stark contrast to the statutory minimum wage, which is set to rise to £12.21 an hour next month, a figure many see as insufficient given the cost of living.
Investors warn that continuing to pay only the legal minimum undermines the vitality of the UK economy by increasing dependency on state welfare and raising healthcare costs. They contend that a fairer wage system would empower workers, support community stability, and ultimately foster a more robust consumer market.
Retailers such as JD Sports and Next have been criticized for limiting higher pay benefits to older staff, while M&S, despite already paying the real living wage to its employees, has been urged to extend the same standard to its third-party contractors. With this campaign, investors aim to spark sector-wide changes that could drive a shift towards more equitable pay practices across the UK retail landscape.
