Help low-paid workers or face curbs to bosses’ pay, fund managers tell UK firms
Many of Britain’s largest employers must do more to increase pay for workers struggling with the cost of living crisis or face votes against pay increases for executives, investment managers have warned.
Peter Hugh Smith, the chief executive of CCLA, an investment manager for the pensions of charities and church organisations, said many employers were failing “to do the right thing” and meet the “basic standard” of paying workers a living wage.
“The cost of living crisis is a long way from over,” said Hugh Smith. “There is movement in places, but not nearly enough.”
UK annual consumer prices index inflation remained above 10% in March, after peaking at 11.1% in October. Within that, food prices rose by 19.1% in the year to March, putting the most pressure on lower-paid workers, for whom food represents a greater share of total spending.
CCLA, which manages assets worth about £13.5bn, is one of several investors that have raised the issue of low pay with British companies as many prepare to hold their annual meetings.
The UK’s largest asset manager, Legal and General Investment Management, and the largest workplace pension scheme, Nest, as well as Aviva Investors and Axa Investment Managers, joined a call this month for companies to give pay increases that help the lowest-paid workers with the effects of inflation, and for the real living wage to be paid across their entire supply chains. The real living wage – above the “national living wage” at £10.90, or £11.95 in London – is set by the Living Wage Foundation.
Dan Howard, head of good work at ShareAction, which organised the statement, said: “While everyone is feeling the pinch of the cost of living crisis, workers on low wages and insecure contracts are being
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