A shareholder resolution at one retailer is an imperfect weapon for a scrap over pay that really relates to sector-wide issues
That’s part one of Sainsbury’s interesting week out of the way: a trading update that showed a drop in sales amid the squeeze on consumers’ budgets but, critically, also contained a prediction that profits for the financial year will arrive within the previously advertised range of between £630m and £690m. Part two should be more lively because Thursday’s annual meeting will consider, in a roundabout way, how the spoils should be divided fairly.
The campaign group ShareAction has tabled a special resolution that would force Sainsbury’s, against the will of its board, to become an accredited “real living wage” employer. Half the companies in the FTSE 100 index are members of the Living Wage Foundation, which sets voluntary rates above legal minimums. Why can’t an upright supermarket chain that boasts about wanting to “make a difference to our colleagues and communities” also sign up?
