A coalition of 15 major investors managing GBP2.4tr(USD3tr) has signed a statement urging businesses to provide adequate support for lowest-paid workers to help them cope with the current cost of living crisis, as reported by Reuters on April 14. Responsible investment group, ShareAction, gathered investors including the UK’s biggest asset manager Legal and General Investment Management [LGEN:LN], Aviva Investors[AV/:LN], AXA Investment Managers, and Nest. They will write to enterprises ahead of their annual general meeting (AGM), asking boards about their position on taking fair remuneration policies to address inequality in the cost of living. 

The joint statement called on the UK’s biggest firms to ensure that the lowest-paid workers receive sufficient pay awards that meet the current rate of inflation, commit on a long-term basis to paying the real living wage to all employees across supply chains, including third-party contracted staff, and provide secure work through guaranteed working hours and fair and accurate contracts. High inflation across the UK economy has left 7.2 million people without basic essentials, and 4.7 million are behind on their bills, according to December 2022 research by Joseph Roundtree Foundation (JFR). Companies are being urged to pay fair wages throughout their supply chains and offer decent contracts, as this protects their employees from the immediate cost of living crisis and serves the long-term interests of the business and society, according to Dan Howard, head of good work at ShareAction. Howard also noted that businesses that fail to follow the appeal would face more pressure from shareholders in the coming year.

Sources: 

https://www.reuters.com/world/uk/investors-urge-uk-firms-protect-low-paid-workers-2023-04-17/

https://www.ipe.com/news/institutional-investors-call-on-companies-for-cost-of-living-support-for-employees/10066147.article

https://www.jrf.org.uk/report/going-under-and-without-jrfs-cost-living-tracker-winter-202223