Who pays the ‘real living wage’ in Britain – and who doesn’t? | living wage
JThe ‘real living wage’ is set by the Living Wage Foundation (LWF) and is £9.90 in the UK and £11.05 in London. It’s independently calculated based on what people need to get by and is currently paid by over 10,000 companies. The organization runs an accreditation program in which companies commit to paying all staff and those in their network a living wage. Here we take a look at some of the major retail players who have been accredited to pay the living wage, and others who have not.
Accredited by the Living Wage Foundation
The fashion powerhouse was accredited by the LWF in April 2015. The British luxury brand is listed on the London Stock Exchange and has over 9,000 employees worldwide. Its chief executive, Jonathan Akeroyd, took the reins last October after having been the boss of rival fashion house Versace since 2016. He had also held positions at Alexander McQueen and Harrods. Akeroyd received a £6m ‘golden hello’ for stepping down from his previous role, with an agreement to receive a base salary of £1.1m, with a maximum annual bonus of up to 200% of its basis and a share plan worth 162.5% of the annual salary.
Scandinavian furniture retailer flatpack was accredited by the LWF in March 2016. The Sweden-based company was founded in 1943 and has grown rapidly to have stores in 30 countries and 225,000 employees. Last year the company was hailed by retail union Usdaw for being “one of the few retail employers paying the real living wage”. Jesper Brodin is chief executive of Ingka Group, the holding company that controls most Ikea stores globally, but in the UK his boss is Peter Jelkeby, who Companies House documents show was paid £268,000 in 2019 and £271,000 in 2020.
The cosmetics firm was accredited by the LWF in April 2017. It was created in 1995 by six co-founders: Helen Ambrosen, Liz Bennett, Rowena Bird, Mark Constantine, Mo Constantine and Paul Greaves. Mark Constantine is the current Managing Director and the company employs over 4,000 people in the UK and 13,652 people worldwide. The company is private and does not make public the salary of its general manager. He prides himself on his ethical approach to business and handmade natural products. He previously said paying the living wage was “another important ethical commitment that we have made as a company”.
Accredited by the Non-Living Wage Foundation
The popular high street clothing store is not LWF accredited. However, the company, which employs 78,000 people, has unveiled a sustainability strategy pledging that all workers in its supply chain will receive a living wage by 2030. The plan also commits the company ensure that their clothes are made from materials that are recyclable or from more sustainable sources. materials. Its chief executive, Paul Marchant, said the “exciting new chapter” would still provide customers with the affordable products they are used to, but “in a way that is better for the planet and the people who make them”. The retailer is owned by Associated British Foods, whose chief executive is George Weston, whose total salary was £1.13m in 2020 and £3.39m in 2021.
The sportswear company was founded by John Wardle and David Makin in Bury, Greater Manchester in 1981 and is not an LWF accredited employer. There have been no recent announcements or commitments from the company regarding paying the living wage for the more than 37,000 employees it employs. The current executive chairman is Peter Cowgill, who has held the position with the company since March 2004. He was paid £4.29m in 2021 and £4.72m in 2020.
The fast fashion retailer is not an LWF accredited employer. However, the company is committed to having a net zero environmental impact by 2030, giving customers more information about its supply chain and hiring a more diverse workforce. The previous chief executive, who left in October last year, was Nick Beighton who was paid £1.88million in 2021 and received a total salary of £1.73million in 2020. company is still looking for a replacement CEO, along with CFO. , Matt Dunn, excluding himself from the race for the highest position. The company directly employs 3,600 people.