Latest news with #CatherineHowarth
Yahoo
2 days ago
- Business
- Yahoo
JD Sports, M&S and Sainsbury's to face shareholder pressure over low pay
Major high street retailers are set to face pressure from shareholders over low pay in their workforce, including third-party contractors. ShareAction, which campaigns for responsible investment, has put forward resolutions on the issue, which will be voted on by shareholders at M&S and JD Sports' annual general meetings (AGMs) on Tuesday and Wednesday respectively. While the group is not filing a resolution at Sainsbury's, shareholders will directly question the board about pay transparency at the supermarket's AGM on Thursday. The companies are facing questions over wages that do not meet the 'real living wage' of £12.60 per hour nationally and £13.85 per hour in London for those aged 21 and over. These wages, which are set by the Living Wage Foundation to reflect the true cost of living, exceed the 2025/26 legal minimum wage of £12.21 set for the whole country including London. ShareAction argues the real living wage boosts stability, productivity and brand value, and has long been campaigning on the issue across the retail sector. Catherine Howarth, chief executive at ShareAction, said: 'We urge investors to support the shareholder resolutions going to a vote at the AGMs of M&S and JD Sports. 'Votes in support will endorse good governance and risk management whilst recognising the workers who keep these businesses running.' The resolutions ask M&S and JD Sports to disclose information on the number of employees earning below the real living wage and staff turnover rates as well their approach to setting base pay for contracted staff and a cost/benefit analysis of setting the real living wage across their workforce. While M&S pays direct employees at least the real living wage, it argues that third-party contractors are independent and set their own pay. M&S's board is recommending shareholders oppose the resolution, citing its recent investments in employee compensation of more than £285 million since 2022 and an increase to the standard hourly rate by more than 26%. On third-party contractors, it also said the vast majority of colleagues are paid at or above the real living wage. At the AGM, M&S could also be questioned about the major cyber attack it suffered earlier this year, which halted website orders, disrupted contactless payments, left some shelves empty and saw personal customer data taken by hackers. The company said the incident is likely to drag its group operating profits down by around £300 million this year but it expects this to be reduced through cost management, insurance and other reactions. For JD Sports, the activists argue that the firm only guarantees the legal minimum wage and lacks transparency on contractor pay. The board has advised shareholders to vote against the proposals, saying the firm complies with legal requirements and has invested more than £75 million over the last three years in removing the age banding as well as enhancing the remuneration and benefits of lowest-paid workers. Further reporting adds no value, reduces flexibility, raises costs and may harm competitiveness, the retailer said. Pensions & Investment Research Consultants (PIRC), which is Europe's largest independent shareholder advisory consultancy, is supporting the resolution at both companies' AGMs. PIRC said that while M&S has made progress on pay, there is still room to improve in formally committing to wage standards and increasing transparency for contractor pay. For JD Sports, the consultancy argues that legal compliance is not best practice and that pay transparency is needed to assess risks and resilience. It follows an identical resolution filed at Next in May, which gained the support of over a quarter of shareholders. While not legally binding, support for shareholder resolutions can put pressure on business leaders to respond to the matters raised, and more than 20% of dissent against the board can be considered a rebellion. During Sainbury's AGM, shareholders plan to stand up and ask the board to commit to disclosing the composition and pay of their workforce, employee turnover, and the feasibility of paying the real living wage for all staff, including all third-party contractors. An M&S spokesperson said: 'In addition to paying the real living wage, we offer an industry-leading range of benefits which, when taken with hourly pay, is worth up to £15.40 an hour. 'In regards to on-site third party contractors, which we use for specialist roles and to support the inherent seasonality in retail, a vast proportion of colleagues are paid at or above the real living wage and we go to great lengths to ensure they are all treated as part of the M&S family. 'While we support and act on the principle that all M&S-related colleagues should be paid well, we do not believe it is right to divest responsibility for setting pay and benefits away from businesses and their shareholders to a third party, as ShareAction would propose.' A JD Group spokesperson said: '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 July 2 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.' The PA news agency has contacted Sainsbury's for comment.
The Independent
2 days ago
- Business
- The Independent
JD Sports, M&S and Sainsbury's to face shareholder pressure over low pay
Major high street retailers are set to face pressure from shareholders over low pay in their workforce, including third-party contractors. ShareAction, which campaigns for responsible investment, has put forward resolutions on the issue, which will be voted on by shareholders at M&S and JD Sports' annual general meetings (AGM s) on Tuesday and Wednesday respectively. While the group is not filing a resolution at Sainsbury's, shareholders will directly question the board about pay transparency at the supermarket's AGM on Thursday. The companies are facing questions over wages that do not meet the 'real living wage' of £12.60 per hour nationally and £13.85 per hour in London for those aged 21 and over. These wages, which are set by the Living Wage Foundation to reflect the true cost of living, exceed the 2025/26 legal minimum wage of £12.21 set for the whole country including London. ShareAction argues the real living wage boosts stability, productivity and brand value, and has long been campaigning on the issue across the retail sector. Catherine Howarth, chief executive at ShareAction, said: 'We urge investors to support the shareholder resolutions going to a vote at the AGMs of M&S and JD Sports. 'Votes in support will endorse good governance and risk management whilst recognising the workers who keep these businesses running.' The resolutions ask M&S and JD Sports to disclose information on the number of employees earning below the real living wage and staff turnover rates as well their approach to setting base pay for contracted staff and a cost/benefit analysis of setting the real living wage across their workforce. While M&S pays direct employees at least the real living wage, it argues that third-party contractors are independent and set their own pay. M&S's board is recommending shareholders oppose the resolution, citing its recent investments in employee compensation of more than £285 million since 2022 and an increase to the standard hourly rate by more than 26%. On third-party contractors, it also said the vast majority of colleagues are paid at or above the real living wage. At the AGM, M&S could also be questioned about the major cyber attack it suffered earlier this year, which halted website orders, disrupted contactless payments, left some shelves empty and saw personal customer data taken by hackers. The company said the incident is likely to drag its group operating profits down by around £300 million this year but it expects this to be reduced through cost management, insurance and other reactions. For JD Sports, the activists argue that the firm only guarantees the legal minimum wage and lacks transparency on contractor pay. The board has advised shareholders to vote against the proposals, saying the firm complies with legal requirements and has invested more than £75 million over the last three years in removing the age banding as well as enhancing the remuneration and benefits of lowest-paid workers. Further reporting adds no value, reduces flexibility, raises costs and may harm competitiveness, the retailer said. Pensions & Investment Research Consultants (PIRC), which is Europe's largest independent shareholder advisory consultancy, is supporting the resolution at both companies' AGMs. PIRC said that while M&S has made progress on pay, there is still room to improve in formally committing to wage standards and increasing transparency for contractor pay. For JD Sports, the consultancy argues that legal compliance is not best practice and that pay transparency is needed to assess risks and resilience. It follows an identical resolution filed at Next in May, which gained the support of over a quarter of shareholders. While not legally binding, support for shareholder resolutions can put pressure on business leaders to respond to the matters raised, and more than 20% of dissent against the board can be considered a rebellion. During Sainbury's AGM, shareholders plan to stand up and ask the board to commit to disclosing the composition and pay of their workforce, employee turnover, and the feasibility of paying the real living wage for all staff, including all third-party contractors. An M&S spokesperson said: 'In addition to paying the real living wage, we offer an industry-leading range of benefits which, when taken with hourly pay, is worth up to £15.40 an hour. 'In regards to on-site third party contractors, which we use for specialist roles and to support the inherent seasonality in retail, a vast proportion of colleagues are paid at or above the real living wage and we go to great lengths to ensure they are all treated as part of the M&S family. 'While we support and act on the principle that all M&S-related colleagues should be paid well, we do not believe it is right to divest responsibility for setting pay and benefits away from businesses and their shareholders to a third party, as ShareAction would propose.' A JD Group spokesperson said: '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 July 2 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.'
The Guardian
27-03-2025
- Business
- The Guardian
Major UK investors join push for retail giants to pay workers ‘real living wage'
Major investors including Axa and Scottish Widows are backing shareholder resolutions pressing retailers Next, Marks & Spencer and JD Sports to increase pay for thousands of workers. More than 100 individuals and eight institutional investors, which manage over £1tn in assets, are backing an effort to encourage companies to pay a 'real living wage', which is designed to ensure workers can cover necessary household costs. The move comes amid evidence that almost a quarter of UK retail workers – 818,000 people – are not being paid the rate tracked by the Living Wage Foundation, which accredits employers. The real living wage – which is voluntarily paid by more than 15,000 UK businesses – is £13.85 an hour in London, and £12.60 in the rest of the UK, while the statutory minimum wage is scheduled to increase by 6.7% to £12.21 from next month. Catherine Howarth, the chief executive of campaign group ShareAction which is coordinating the effort, said: 'The UK's biggest retailers are failing to support their workers with a real living wage, leaving hundreds of thousands of people in the sector struggling to make ends meet. 'Companies whose workforce earn less than a real living wage are ultimately harming the vitality and growth of the UK economy, with business models that put pressure on workers, their families and the state by adding to health and welfare costs.' Seven institutional investors including Axa Investment Managers, Scottish Widows, Trust for London, the Greater Manchester Pension Fund and Cardano Group are co-filing a resolution on the issue at Next's annual shareholder meeting on 15 May. The detailed resolution calls on Next, which releases its annual results on Thursday, to prepare a report on how many of its workers, including contractors, are paid below the real living wage and to carry out a cost/benefit analysis of making the independently verified rate its new minimum. The resolution claims that Next's current pay rates may mean it cannot meet its stated aim to create a workplace where everyone is 'treated fairly and with respect, listened to [and] motivated to achieve their full potential'. Similar resolutions are being put forward at JD Sports' and M&S's annual meetings – both of which will be held in July. Friends Provident Foundation and Scottish Widows are supporting both resolutions, with Cardano Group adding its backing at JD Sports. Charlie Crossley, the investment engagement manager at Friends Provident Foundation said: 'If more major companies committed to real living wage accreditation, it would empower thousands of workers to meet everyday costs and save for life's critical moments. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'It would also advance workplace equality – key to maintaining social cohesion and long-term economic stability. Meaningful change requires sector-wide progress. That's why investors are co-filing resolutions across multiple companies.' JD Sports currently pays all staff the legal minimum for those aged 21 and over with nothing extra in more expensive areas such as London. Next pays only staff who are over 21 that minimum, with some extra in London. M&S pays the real living wage to employees but does not guarantee it for third-party contracted staff such as security guards and cleaners. M&S said it already paid employees at least the real living wage, irrespective of age, as well as benefits including staff discount and a competitive pension. A spokesperson added: 'We strongly believe that our third-party contractors should also pay their employees fairly. We welcome open dialogue with all of our shareholders, including engagement with ShareAction.' A JD spokesperson said: 'All JD UK retail colleagues are compensated above the national living wage for those aged 21 and above, alongside a comprehensive benefits package available from the first day of employment.' Next declined to comment.
Telegraph
10-03-2025
- Business
- Telegraph
Campaigner against arms industry is board member at major pension fund
A leading campaigner against 'controversial' weapons makers sits on the board of Britain's largest pensions scheme. Catherine Howarth – one of 14 board members at the National Employment Savings Trust (Nest) – is chief executive of campaign group ShareAction, which seeks to prevent investment in fossil fuels and some types of armaments. Ms Howarth is responsible for helping to set the 'strategic direction' of Nest, a government-run scheme which manages the pensions of 13.5m people across Britain. It comes as Britain scrambles to rearm in the face of Russian aggression, with experts concerned that a lack of support from the City is holding the defence industry back. Grant Shapps, a former Tory defence secretary, said: 'Our defence industry protects the very freedoms that allow these campaigners to protest in the first place. Weakening it is not just reckless, it's dangerous.' ShareAction was first formed in 2005 out of a campaign by the student activist group People & Planet. Under Ms Howarth's leadership, it has put pressure on leading British investors over their financing of the arms industry. Ms Howarth – who was also previously a board member at the Scott Trust, owner of the Guardian newspaper – has personally voiced support for moves by big investors to withdraw funds from weapons makers that manufacture 'controversial weapons,' including cluster munitions. Although these are banned in many countries' armed forces, including those of the UK, they are legal in the US and have been used by Ukraine to resist the Russian invasion. Sir Ben Wallace, who served as defence secretary from 2019 to 2023, said: 'British defence companies help keep the men and women of our armed forces safe, and the more investment from British pension funds, the less likely we will have to be dependent on foreign nations who may not share liberals' values.' Ms Howarth joined ShareAction in 2008, having previously worked as the lead organiser at local campaign group West London Citizens, which she founded in 2000. As ShareAction's chief executive, she has personally supported calls on investors, including HSBC, to withdraw funding from makers of 'controversial weapons'. ShareAction has also led calls for Britain's top investors to stop funding arms manufacturers. The charity was initially formed out of People & Planet's campaign for the Universities Superannuation Scheme (USS) to adopt an ethical investing strategy. In 2020, the USS, which manages £78bn of pensions savings on behalf of university workers, divested from companies that make landmines, white phosphorus and cluster munitions, in a move celebrated by ShareAction and Ms Howarth as a victory. Ms Howarth first joined Nest's board in November 2024, having previously praised the pensions scheme's own efforts to avoid investing in cluster bombs. In a tweet from 2017, Ms Howarth said: 'Good to know @shareactionuk's pension fund, @nestpensions, has no holdings in cluster bomb makers. Quite right too.' Alongside her position at ShareAction, Ms Howarth also joined the committee that advises the Financial Conduct Authority on environmental, social and governance (ESG) issues and acts as a member of the Treasury's task force on asset management. £44bn of assets Nest manages £43.5bn of investments, many on behalf of workers at small businesses. The organisation actively seeks to avoid 'investing in companies directly involved in the production or sale of cluster weapons, anti-personnel landmines or chemical and biological weapons.' The pensions company, which was set up to facilitate auto-enrolment pensions in 2008, also has two ESG-focused funds, with £390m in assets that shun any investment in arms companies entirely. Nest currently has around £610m invested in companies that make defence equipment including BAE Systems, Airbus and Rolls-Royce. Mr Shapps said: 'Our military strength underpins our national security, our alliances and our democracy. Without it, we leave ourselves vulnerable while adversaries continue to arm themselves.' Brendan McCafferty, Nest's chairman, said: 'Catherine is a fantastic addition to Nest's board. Her expertise on stewardship and responsible investment is second to none, demonstrated by her membership on the FCA's sustainable finance committee and Treasury's asset management taskforce. 'I look forward to continuing working with Catherine, drawing on her expertise as we shape an investment strategy that helps millions of UK workers enjoy a more secure and comfortable retirement.' A Shareaction spokesman said: 'Catherine Howarth was asked to join Nest's board bringing years of experience of financial stewardship and responsible investment to the fore including membership on the FCA's Sustainable Finance Committee and Treasury's Asset Management Taskforce. As a Nest trustee, Catherine does not have day-to-day involvement in decisions at Nest, notably investment decisions, and Catherine does not serve on the Nest Invest board either. 'While the current geopolitical landscape is driving a reassessment of the defence sector, responsible investment in the arms sector needs rigorous examination of potential impacts on issues from human rights to polluting the environment in order to manage legal and reputational risks. 'At a minimum, a responsible investment approach requires strict avoidance of controversial weapons regulated by international conventions. For conventional weapons investment, any institutional investor should conduct enhanced due diligence on the human rights impacts of the company and should engage them on such impacts.'
Yahoo
10-03-2025
- Business
- Yahoo
Campaigner against arms industry is board member at major pension fund
A leading campaigner against 'controversial' weapons makers sits on the board of Britain's largest pensions scheme. Catherine Howarth – one of 14 board members at the National Employment Savings Trust (Nest) – is chief executive of campaign group ShareAction, which seeks to prevent investment in fossil fuels and some types of armaments. Ms Howarth is responsible for helping to set the 'strategic direction' of Nest, a government-run scheme which manages the pensions of 13.5m people across Britain. It comes as Britain scrambles to rearm in the face of Russian aggression, with experts concerned that a lack of support from the City is holding the defence industry back. Grant Shapps, a former Tory defence secretary, said: 'Our defence industry protects the very freedoms that allow these campaigners to protest in the first place. Weakening it is not just reckless, it's dangerous.' ShareAction was first formed in 2005 out of a campaign by the student activist group People & Planet. Under Ms Howarth's leadership, it has put pressure on leading British investors over their financing of the arms industry. Ms Howarth – who was also previously a board member at the Scott Trust, owner of the Guardian newspaper – has personally voiced support for moves by big investors to withdraw funds from weapons makers that manufacture 'controversial weapons,' including cluster munitions. Although these are banned in many countries' armed forces, including those of the UK, they are legal in the US and have been used by Ukraine to resist the Russian invasion. Sir Ben Wallace, who served as defence secretary from 2019 to 2023, said: 'British defence companies help keep the men and women of our armed forces safe, and the more investment from British pension funds, the less likely we will have to be dependent on foreign nations who may not share liberals' values.' Ms Howarth joined ShareAction in 2008, having previously worked as the lead organiser at local campaign group West London Citizens, which she founded in 2000. As ShareAction's chief executive, she has personally supported calls on investors, including HSBC, to withdraw funding from makers of 'controversial weapons'. ShareAction has also led calls for Britain's top investors to stop funding arms manufacturers. The charity was initially formed out of People & Planet's campaign for the Universities Superannuation Scheme (USS) to adopt an ethical investing strategy. In 2020, the USS, which manages £78bn of pensions savings on behalf of university workers, divested from companies that make landmines, white phosphorus and cluster munitions, in a move celebrated by ShareAction and Ms Howarth as a victory. Ms Howarth first joined Nest's board in November 2024, having previously praised the pensions scheme's own efforts to avoid investing in cluster bombs. In a tweet from 2017, Ms Howarth said: 'Good to know @shareactionuk's pension fund, @nestpensions, has no holdings in cluster bomb makers. Quite right too.' Alongside her position at ShareAction, Ms Howarth also joined the committee that advises the Financial Conduct Authority on environmental, social and governance (ESG) issues and acts as a member of the Treasury's task force on asset management. Nest manages £43.5bn of investments, many on behalf of workers at small businesses. The organisation actively seeks to avoid 'investing in companies directly involved in the production or sale of cluster weapons, anti-personnel landmines or chemical and biological weapons.' The pensions company, which was set up to facilitate auto-enrolment pensions in 2008, also has two ESG-focused funds, with £390m in assets that shun any investment in arms companies entirely. Nest currently has around £610m invested in companies that make defence equipment including BAE Systems, Airbus and Rolls-Royce. Mr Shapps said: 'Our military strength underpins our national security, our alliances and our democracy. Without it, we leave ourselves vulnerable while adversaries continue to arm themselves.' Brendan McCafferty, Nest's chairman, said: 'Catherine is a fantastic addition to Nest's board. Her expertise on stewardship and responsible investment is second to none, demonstrated by her membership on the FCA's sustainable finance committee and Treasury's asset management taskforce. 'I look forward to continuing working with Catherine, drawing on her expertise as we shape an investment strategy that helps millions of UK workers enjoy a more secure and comfortable retirement.' A Shareaction spokesman said: 'Catherine Howarth was asked to join Nest's board bringing years of experience of financial stewardship and responsible investment to the fore including membership on the FCA's Sustainable Finance Committee and Treasury's Asset Management Taskforce. As a Nest trustee, Catherine does not have day-to-day involvement in decisions at Nest, notably investment decisions, and Catherine does not serve on the Nest Invest board either. 'While the current geopolitical landscape is driving a reassessment of the defence sector, responsible investment in the arms sector needs rigorous examination of potential impacts on issues from human rights to polluting the environment in order to manage legal and reputational risks. 'At a minimum, a responsible investment approach requires strict avoidance of controversial weapons regulated by international conventions. For conventional weapons investment, any institutional investor should conduct enhanced due diligence on the human rights impacts of the company and should engage them on such impacts.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
