Advertisement
Employment

Sainsbury’s bosses have rejected a call to become a real living wage employer

Sainsbury’s does pay its in-house staff the “real living wage” but shareholders blocked a request to extend it to all third-party contractors.

Shareholders of Sainsbury’s have voted against the supermarket becoming a real living wage employer.

Just 17 per cent of investors voted to commit to paying all workers the “real living wage” in the face of rising cost of living and inflation.

The real living wage is independently calculated by the Living Wage Foundation every year, and is described as the amount needed to live adequately in Britain. 

Currently, it stands at £11.05 an hour in London and £9.90 for the rest of the UK. This is higher than the government set national minimum wage, and national living wage for people aged 23 and above.

Sainsbury’s chair Martin Scicluna argued that committing the business to paying every employee at least the living wage would reduce the company’s flexibility. 

Sainsbury’s CEO Simon Roberts was paid £3.8million last year.

Advertisement
Advertisement

While Sainsbury’s was the first supermarket to pay all of its in-house staff the real living wage, investors refused to extend this to third party contractors such as cleaners or security staff, meaning it can’t be classed as a living wage employer.

Becoming an accredited living wage employer would also commit the supermarket to increasing its rate of pay each year’s new calculation of the real living wage. 

“We are the leader in the supermarket world in paying the living wage right now. We’ve got an amazing track record of being a responsible business. And there are other retailers who frankly have not demonstrated that they’re responsible,” Scicluna told ShareAction, which campaigns for responsible investment and tabled the motion at the Sainsbury’s AGM.

“We believe we have behaved very, very responsibly, the only difference … is that we don’t want to go the full length of being accredited,” he continued. 

ShareAction’s Rachel Hargreaves said while the motion received significant shareholder support, “a large proportion of shareholders chose to prioritise short-term returns over the real long-term issue: rising inequality in our society.”

She added: “As we deal with the continued effects of the cost-of-living crisis, the conversation around low pay isn’t going to go away, and both employers and investors need to step up.”

In response to soaring inflation, The Living Wage Foundation has announced it will be bringing its 2022-23 rate forward by two months to September, in response to the rising cost of living.

Katherine Chapman, director  of the Living Wage Foundation said: “Although the wait for a living wage accredited supermarket continues, Sainsbury’s deserves credit for increasing the pay to all directly employed staff to at least the real living wage.”

Advertisement

Become a Big Issue member

3.8 million people in the UK live in extreme poverty. Turn your anger into action - become a Big Issue member and give us the power to take poverty to zero.

Recommended for you

Read All
Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support
disabled person working
Disability rights

Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?
Minimum wage

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?
real living wage

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea
Employment

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue