Next requests shareholders vote against resolution calling to disclose employee wages
Next has called on its shareholders to vote against a resolution requesting for the British fashion retailer to disclose how it pays employees to address concerns over employee wages.
A group of investors is hoping Next will increase its transparency and improve conditions for shop floor workers by revealing how many of its 40,000 staff are paid below the real living wage.
The resolution is being backed by a group of institutional shareholders–including Axa, Scottish Widows and the Greater Manchester Pension Fund–according to This Is Money, which initially reported the news.
Speaking to the media outlet, Clare Richards, a member of the Church of England Pensions Board, another backer of the resolution, said: 'Greater disclosure by Next of its pay practices would demonstrate how the company seeks to balance the needs of their stakeholders and lowest paid workers.'
The real living wage is set at 12.60 pounds an hour in the UK, sitting higher than the national minimum wage, which is 12.21 pounds and 10 pounds for those between 18 and 20. In London, the minimum wage amounts to 13.85 pounds.
Next responded to the resolution in its latest annual report where it said that it 'did not believe it was appropriate to produce additional bespoke reports beyond its current disclosures', which it claimed already aligned with its legal obligations.
In the report, Next stated that it pays retail workers in line with statutory minimums, including use of age-related National Minimum Wage rates. National living wage is used as a baseline, payment for which is only guaranteed after one year of service with a performance requirement attached to the uplift.
Any increase to its wages would come with 'significant cost implications', the retailer noted, before adding that it wanted 'flexibility' to set its own pay rates, instead of outsourcing the decision to a third party.
In conclusion, the company added: 'We are committed to paying fair wages and acting in the best interests of all stakeholders. However, we believe it is vital for the company to retain control over pay and benefits decisions rather than ceding this responsibility to an external body. Formal 'Living Wage' accreditation would compromise this flexibility, increase costs, and impact employment opportunities.'
The resolution will be voted on during Next's upcoming general meeting, scheduled to be held May 15.
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