= LIVING WAGES CAMPAIGN
AGMs
In 2011 FairPensions went to AGMs up and down the country asking Britain's biggest companies to pay a Living Wage. You can find out what we asked and how it went here.
For a real flavour of what it's like to attend an AGM read a report from one of our most active supporters here
Click on the company logo to find out about their AGM.
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AstraZenica (26.04.2012)
We asked: "My name is Louise Rouse and I am here as a proxy.
I would like to congratulate the board on its gender balance and I'm pleased to see that gender balance being maintained with the new appointments.
Last May a group of investors wrote to the CEO's of FTSE 100 companies including AstraZeneca encouraging the payment of the Living Wage to all UK based staff and contracted workers such as security guards and cleaners. I'm pleased to say that AstraZeneca responded to that letter with respect to directly employed staff and have continued to engage constructively with investors on the Living Wage as it applies to contracted staff. I would be grateful if you could confirm that, notwithstanding the significant changes at senior board level announced this morning, AstraZeneca will continue to consider the implementation of the Living Wage in the UK and continue its constructive engagement with investors on this issue."
They said:
Incoming interim CEO Simon Lowth answered the question saying there would be no change in policy and that they would continue to engage constructively on the issue.
Aviva (04.05.2011)
We asked:
"I note from this year's Corporate Responsibility Report our company's strong commitment to being "a responsible purchaser" and to "supporting our suppliers in meeting the highest social, environmental and ethical standards in the delivery of goods and services".
In 2005 our Corporate Social Responsibility Report stated that following discussions with The East London Communities Organisation (TELCO), Aviva, and I quote from page 27 of that report, "made sure that the provisions of the Living Wage were respected" with regard to contracted support services such as cleaners.
Can you confirm whether in the last 6 years Aviva has maintained this commitment to the London Living Wage which is now applied by over 140 organisations and is regarded as an important practical demonstration of corporate citizenship.
A Living Wage figure for all areas outside London was announced on Monday - £7.20 per hour. Can you assure investors that Aviva will give careful consideration to the application of Living Wage standards across our UK operations outside London?"
They said:
Aviva have said that they 'already pay' the London Living Wage and are seriously considering going national. We will be meeting them in the near future and pressing them to become a national living wage employer.
Barclays (27.04.2011)
Catherine Howarth, FairPensions ' CEO, asked a question:
"My name is Catherine Howarth, Ordinary Shareholder. My question is for Mr Bob Diamond. Barclays can justly be proud of its leadership in the banking community on the question of Living Wages. Barclays was the first major corporate to adopt Living Wage standards for its head office in Canary Wharf in 2003. Since then, Barclays has spread Living Wage standards across the whole of its London branch network. Both your actions and public statements on the matter of Living Wages demonstrate that Barclays understands the strong business case and the ethical case for these socially responsible standards. Will you confirm today that Barclays now intends to spread this good practice across the UK operations of our bank?"
Mr Diamond's response demonstrated that he was not in fact familiar with Barclays' position on Living Wage standards. This was a bit surprising given that Boris Johnson, Mayor of London, actually announced 2009's London Living Wage figure from Barclays head office in Canary Wharf in a show of appreciation for Barclays' stance in London. Nevertheless, Mr Diamond verbally committed at the meeting to ensure that the bank's executive team would give early consideration to the question posed. Since then Mr Diamond has signed a letter received by FairPensions confirming that Philippa Birtwell (who was personally involved in Barclays move to Living Wage standards in 2003) is looking at what Barclays can now do nationally. We look forward to meeting with Ms Birtwell who has also confirmed by email her intention to meet with us when appropriate internal research has been conducted.
BT (13.07.2011)
We asked:
"A Living Wage is the minimum hourly wage necessary for housing, food and other basic needs for an individual and their family. The Living Wage is currently calculated at £8.30 an hour in London and £7.20 an hour outside London.
BT pays at least the Living Wage for most of its employees, but there are still some directly employed BT staff who, at the minimum of their pay scales, earn below the Living Wage. Not only that, many of the agency workers employed on BT premises are paid below the Living Wage. For example, I'm led to believe that some agency workers on the BT broadband technical helpdesk earn just £6.50 per hour.
Accredited Living Wage employers ensure all their own staff and those of their on-site contractors are paid at least the Living Wage, and research and business testimony show that doing so is in their own best interests. KPMG is an accredited Living Wage employer and they have found that paying the Living Wage has reduced turnover and absenteeism, while increasing productivity and professionalism.
So for the benefit of both the company and its workforce, can you give us a commitment that BT will seek to establish itself as an accredited Living Wage employer?"
They said:
BT responded that they do not directly employ workers who earn less then the living wage, suggesting that FairPensions should approach the outside contractors. They added that they are in favour of the objectives of the Living Wage Campaign and that they understand the benefits of establishing a living wage policy. However, BT said that they will continue to engage with contractors on low pay. They tried to underline instead the efforts being done in order to increase the permanent staff and their work experience placements.
Capita (10.05.2011)
Andrew, a worker at Capita, went to their AGM and asked this question:
"I am an employee of Capita and have been one for six years now. I'd like to say how pleased and proud I was to hear of Capita's impressive profits in 2010 despite the tough economic climate. I work on the Heywood site of the DWP Record Storage contract which comes under the Integrated Services division. I am presently on an hourly rate of £6.48. There has been a recent announcement of a national living wage of £8.30 in London and elsewhere in the UK, including Lancashire where I work, of £7.20. That would be an increase of less than 80p per hour for myself and my colleagues. This living wage has been adopted by KPMG, who you want as auditors, and they pay it to all of their workers as a minimum. I would like to ask the board: would they be able to commit to a meeting with representatives to discuss the company's adoption of this living wage?"
Here's what he though of the experience:
"As to what I thought of the whole experience: bloody nerve racking - especially when I looked at the board members and remembered that they make more in a week then I do in a year! I was, however, encouraged by the positive comments made by a couple of board members (Martina King and Paul Pindar himself) who seemed to take note of the question."
CAPITA LEAFLET
Centrica (09.05.2011)
Brett, a FairPensions supporter who attended our AGM Training, went and spoke to the board:
"The Centrica AGM was pretty interesting affair. I was second to ask a question. The question was delivered clearly and seemed well received (I was diplomatic, which kept the considerable army of pensioners on my side, which was good because they harassed several other people who asked questions). Chairman Sir Roger Carr did not answer it particularly satisfactorily though. He talked about Centrica's ethical standards and how they paid their staff adequately in relation to what they did, but avoided speaking directly about the Living Wage. I didn't get to do a follow-up question, because the microphone had gone."
Brett also had the chance to talk to a number of company representatives after the meeting. Each of the representatives confirmed that they took the issue seriosuly and that it would be looked into.
Brett ended by saying:
"So I guess relatively sucessful, but no clear or binding commitments to look at the issue on their behalf."
GlaxoSmithKline (05.05.2011)
Alastair Lewis from London Citizens asked a question:
"GlaxoSmithKline's stated mission is "to improve the quality of human life by enabling people to do more, feel better and live longer." Through its core business GlaxoSmithKline obviously does much to achieve this. A Living Wage is the minimum hourly rate needed for housing, food and other basic needs. The evidence of expert nutritionists goes into calculating the level of the Living Wage. Today it is £8.30 per hour here in London and £7.20 in the rest of the country. I have seen recruitment ads for cleaning jobs at GSK premises around the UK which state wage levels at and slightly above the minimum wage - certainly well below the rate required for health and well-being in this country.
Given your stated commitment to improving the quality of human life, can the Chairman confirm that GlaxoSmithKline will live up to this mission by applying Living Wage standards to all staff and contractors such as cleaners across the UK? London Citizens and FairPensions would be happy to meet with members of the board to discuss how this could be done in practice."
Barrie Stead, one of our supporters, also went to the AGM and had this to say:
"I enjoyed attending the GSK Annual Meeting and asking a question on the Company's policy on The Living Wage. It was a friendly meeting and we obtained a commitment to meet and talk about the issue. Great! But it was an intimidating experience -imposing building, enormous hall and a formidable line of directors sitting high on the platform facing you. Still it was useful to remember that the Company is required by law to hold such a meeting once a year to give an account to us as shareholders of what it has been doing. And it is likely to be the closest you will get to telling a Director of a major company what you think-we cannot afford to miss such rare chances to press our case.
The training that FairPensions provided was essential-it taught me what to expect and gave me confidence. You have to do your homework on the issue you want to raise and its relevance to the company. Prepare your question but be ready to be flexible to reflect the mood of the meeting AND try to keep hold of the microphone to ask a supplementary question if you get an evasive answer first time. Don't sit in a tight group but otherwise enjoy doing something useful."
GSK LEAFLET
GlaxoSmithKline Update (15.05.2012)
Question (from Louise Rouse): "I am a shareholder, but because I hold through a nominee, I am technically here as a proxy.
Last year at this meeting, two shareholders raised the issue of the living wage for UK workers and on-site contracted workers at GSK premises such as cleaners, caterers, security staff and requested a meeting with the relevant personnel to discuss it. I am very pleased to say that that meeting was granted and there were discussions about it. Further correspondence from GSK in writing revealed that the company was absolutely in agreement with the principle of the living wage, while it had some practical issues with its implementation, but spoke only in relation to directly employed staff where it again pleasantly confirmed that all directly employed workers in the UK earn above the living wage rates, but it made no mention of contracted staff on GSK premises who are often the most vulnerable workers - caterers, cleaners.
Given the wonderful work that has been outlined today that GSK is doing around the world for vulnerable people, we would like to know whether given your agreement in principle with the living wage, you would be prepared to raise with your contractors the issue of the living wage and to express your belief that they should also agree in principle with it? Thank you."
Answer (from Sir Christopher Gent): "Can I just make it clear that although we do agree with the principles, because of the way the Living Wage calculate what the wage is, and that doesn't really fit with the kind of compensation models that we have inside, we are not signed up as campaigners for it, but as you rightly say, all of our directly employed employees are comfortably above the living wage levels that you campaign for."
Answer (From Sir Andrew Witty): "I think in terms of the contractors, first of all it is important to recognise in all of our contracts with suppliers we have what I think is actually described as a ‘human rights clause' which specifically requests and demands of those suppliers a variety of different expectations, including at the moment that all employees are paid above the minimum wage which of course is the legislated number which sits out there alongside other variety of things which I think most normal, right-minded people would expect that a good employer ought to do and have in place.
I think our view is very much we are aligned with the CBI, which is that while we share the spirit of what it is that you are trying to achieve, we think it is very hard to achieve that outside of a legislative framework because of all the complexities that Chris is describing.
Now, I am very happy to repeat that we have in our contractual language high expectations on those suppliers. I am also comfortable for us as we come round for those renewals to remind people of the living wage agenda alongside the legislative framework, but I think it is quite hard for us to demand it given the absence of a legislated position, and again, that is what brings us really into line with the CBI on that general issue."
HSBC (27.05.2011)
Barrie Stead, FairPensions supporter and AGM veteran, asked a question:
"My name is Barrie Stead and I have been a shareholder for some years. I was proud to read that staff from our company spent a day helping to sell the Big Issue on the streets of London and also gave financial advice to the vendors. We are duty bound to have a similar concern for the lowest paid who actually work for our company whether as employees or contacted staff employed regularly on our premises such as cleaners, caretakers etc. Accordingly, would you please confirm that all are paid at least the living wage which is the minimum necessary for a family to keep out of poverty - presently £8.30 in London and £7.20 in the rest of the country. We are aware that HSBC already applies Living Wage rates in your Canary Wharf headquarters but want to know about the rest of our premises across the UK."
The question was answered by Douglas Flint, Chairman of HSBC. Mr Flint's response demonstrated some confusion as between the National Minimum Wage and the Living Wage. Nevertheless he confirmed that the matter is currently under active consideration. We know this to be true as we have recently received a letter to that effect from Stuart Gulliver, CEO of HSBC Group who confirmed that the application of Living Wage standards in the UK is being looked at by Mark Sheridan, Director of HR for HSBC Europe. We look forward to hearing more from Mr Sheridan.
After the meeting, Barrie Stead and Catherine Howarth had a good chat with John Thornton, Chair of HSBC's remuneration committee. Mr Thornton also commited to giving Living Wages his active consideration and we will send him a copy of the investor letter on Living Wages which was sent to Stuart Gulliver on 4th May.
Overall, it looks like we have the door open a smidgen at HSBC but a lot of shareholder and customer work to be done before the bank sees the good sense of Living Wages across the UK.
Legal and General (26.05.2011)
Legal & General plc hosted its 2011 AGM in the rather wonderful surroundings of Armoury House in the City on 25th May and FairPensions team member Louise together with one of our supporters went along to make the case for a Living Wage.
Question asked by Barrie Stead (FairPensions supporter and Legal & General shareholder):
"My name is Barrie Stead and I have been a shareholder in the company for several years. Recently, I have become concerned that companies in which I have invested ensure that their staff are paid at least the Living Wage - the minimum needed for a family to keep out of poverty - presently set at £8.30 in London and £7.20 in the rest of the country. I appreciate that this is probably the case for nearly all our directly employed staff but it can be avoided if contractors are used to supply cleaners, security staff etc. Could you please confirm that everyone working regularly on our premises has the same protection of the Living Wage"
In response the Chairman confirmed that Legal & General was sympathetic to the cause and supportive of the Living Wage. He said that Mr. Stead was right in thinking that this was not really a major issue as regards directly employed staff but that Legal & General was now looking at its supply chain as it was an area where it feels it does have responsibility. The Chairman went onto say that Legal & General is currently discussing the matter with its contractors as it wants to ensure that if it makes a commitment to the Living Wage, it will be able to honour this commitment in the medium and long-term. He concluded by saying that he believed Mr. Stead would be happy with the news in the next few months.
So, in light of that answer it certainly seems that Legal & General is well on its way to becoming a Living Wage employer. FairPensions will continue to engage with Legal & General over the coming months and keep supporters updated on developments
Lloyds Banking Group (18.05.2011)
11.00am on Wednesday 18th May saw the Lloyds Banking Group AGM take place in Glasgow and FairPensions team member Louise found herself boarding the 23.50 Caledonian sleeper train from London Euston on Tuesday night to get there in time to ask a question on Living Wages. Our campaign volunteer Amanda headed to Glasgow straight from the AGM success at Standard Life in Edinburgh the day before and undertook live-tweeting duties from Glasgow.
Louise put the following question to Lloyds Chairman Sir Winfried Bischoff:
"Mr. Chairman,
I want to pick up on the point you raised earlier about the people (our staff) "who carry the flame of the Lloyds brand" and our new CEO's comment about wanting Lloyds to make "a contribution to the economic and social wellbeing of the UK". No doubt today, there will be a lot of discussion about executive pay but I have a question about workers at the other end of the salary scale. Mr. Chairman I know that low pay is an issue in which you are both interested in and knowledgeable of given your role on the Commission for Living Standards. As you are no doubt aware a Living Wage is the hourly rate independently determined to be the minimum necessary to provide a decent standard of living and a Living Wage employer is one who ensures that both directly employed staff and on-site contractors such as cleaners are paid a Living Wage which in Scotland is £7.20 per hour. Yesterday, in Edinburgh, Standard Life confirmed that its directly employed staff in the UK are paid at least the Living Wage and that it will introduce discussions on the Living Wage into its procurement processes. My question is whether today in another of Scotland's great cities, another of Scotland's great companies can give similar confirmations?"
In reply, Sir Winfried Bischoff said that they were aware of Standard Life's comments and that Lloyds supports the concept of paying a living wage for all directly employed staff and as to indirectly employed staff they will have to look at the issue and will get back to us with their position.
FairPensions will be following up with Lloyds on the issue of Living Wages.
Marks and Spencers (13.07.2011)
Our supporter, Barrie Stead, said:
"I share the concern that has been expressed about the least well paid in our Company.To avoid poverty or working excessive hours, a full time employee needs to be paid at least the Living Wage which is presently £8.30 per hour in London and £7.20 in the rest of the country to support himself and his family. I believe that our company has a moral duty to do this- otherwise our dividends as shareholders are being subsidised by inadequately paid staff. Does our company pay the minimum of the Living Wage to its employees and contracted staff at the present time and if not, has it the objective of working towards it?"
Barrie's report:
"The Chairman had referred in a previous answer to other benefits available to staff. In answer to my question, he said that the company's staff were paid in the upper quartile for similar companies but the issue of the Living Wage was part of an on-going discussion in the company.
Afterwards, I spoke to two directors. I said that I thought my question had been kicked into the long grass. They did not demur but argued that many staff received benefits.
I said that many poorer staff could not afford to shop at M&S and needed money to pay bills now. They said that with benefits nearly all their lowest paid staff were close to £7.20 per hour and for many of their staff, this was only part time employment .The annual pay review would take place in the autumn.
They acknowledged the point that I had made about shareholder being worried about receiving dividends. They both took copies of Business Briefing and said that they might be in touch."
National Grid (25.07.2011)
Our supporter, Barrie Stead, filed this report:
"A very large crowd in a big venue. Had to register question first so handed in my typed question on Living Wage. The actual question asked
was:-
"Can I start by congratulating the company on the work it does in the community especially with Young Offenders and also you, Mr Chairman, for being prepared to enter into a dialogue with your questioners at this meeting. In your presentations, reference was made to investments of billions of pounds. My question relates to much smaller sums but amounts that are critically important to those affected by them. I have become increasingly concerned to ensure that all the staff in our company are paid at least the Living Wage- presently £ 8.30 per hour in London and £7.20 in the rest of the
country- which is the minimum that a full-time employee needs to maintain him or herself and their family without falling into debt.
This should apply not only to directly employed staff but also to contracted staff who work regularly on the Company's premises. Can you please reassure me that this is our company's policy and, if so, how far has this policy been implemented at the present time? Thank you."
The Chairman, Sir John Parker, responded that as far as he was aware the Company paid at least the Minimum Wage to all its employees . I pointed out the difference between the Minimum and the Living Wage and he replied that as all the Company's staff were highly skilled they would be receiving at least the Living Wage. I asked about contracted staff such as cleaners and he said that he did not know but would look into it and write to me. The Living Wage exchange was the only one that received applause in the Q&A session. Afterwards, I spoke to Steve Holliday, the Chief Executive, and explained that contracting out could be a way of avoiding employment responsibilities. He said he did not know the position but would look into it.
Summary. Very worthwhile Meeting. They moved from being unclear about Minimum/Living Wage to agreeing to look into the position of contracted staff and writing to us."
Rolls Royce (06.05.2011)
Lara, a FairPensions supporter and attendee at our AGM training, asked:
"Chairman, you may be aware that the application of Living Wage standards by FTSE 100 companies across their UK operations for all staff and on-site contracted service staff is rapidly becoming a mark of commitment to corporate social responsibility in this country.
A Living Wage is the minimum hourly rate necessary for housing, food and other basic needs. For London , the new rate was announced on Monday by Boris Johnson, Mayor of London, as £8.30 per hour. Outside London it is £7.20. Can you confirm that the board will give careful consideration to the application of Living Wage standards in your UK operations?"
In response the board confirmed that they would "absolutely" give the issue serious thought. We'll be following up shortly with Rolls Royce.
Lara also said:
"As regards the shareholder activism training, it was really, really useful in preparing me for going to the Rolls Royce AGM. Because of the training, I was able to follow the course of events much better than I would have otherwise. Thanks to the training, I also knew I had to be aggressive in trying to ask my question. If I hadn't had the training, I'm not sure I would have pushed hard enough to have my question asked."
Sainsbury's (15.07.2011)
Question by Barrie Stead:
"I am here as a proxy for my wife and am also , due to the division of family responsibilities , frequently to be seen in your excellent store at Chiswick on most Saturday mornings. We appreciate that the Company has always had a considerable care for its staff and I congratulate you particularly on your gold award in the Investors in People programme. However our immediate concern is whether the Company's lowest paid direct or contracted staff are receiving at least the Living Wage-presently £8.30 per hour in London and £7.20 in the rest of the country- which is the minimum necessary to support a family without poverty or working excessive hours. Frankly,we are concerned as customers and shareholders that we are benefitting from the work of staff who are not being paid enough to have an adequate standard of life. How far has the Company been able to pay at least the Living wage at the present time and what is its policy for implementation in the future?"
Barrie's report:
The Chairman's response was inconclusive. He referred to other benefits available to the staff and in answer to my supplementary question to competitive rates. In answer to a question by an Unite staff member, the chairman referred to prices and responsibility to customers and again to competitive rates in the market place.
After the meeting , I spoke to Anna Ford( ex BBC commentator ) and a non Executive Director who chairs the Corporate Responsibility Committee of the Company. She immediately acknowledged that the Living Wage was a moral issue, that she had raised it with the Board and was prepared to do so again.
The Royal Bank of Scotland (19.04.2011)
We asked:
"I have a question about the people employed by our Company and in particular on-site contract staff we might use. I'm pleased to see on page 42 of the Annual Report that "we aim to extend our employee engagement activities as far as possible to temporary employees and contractors". Much has been made of the bonuses paid to certain of our employees but I am particularly interested in those at the other end of the pay scale.
I would like to ask you Mr. Chairman whether our company pays or will consider paying a living wage - currently £7.20 in Scotland - to all our employees, and contractors? I understand that employees and contractors who earn below this rate are often required to have multiple jobs or to receive welfare payments and I think it would be appropriate for RBS to join other great Scottish institutions such as the Scottish NHS in committing to apply Living Wage standards."
They said:
The RBS board said that they weren't sure what their current pay rates were but that they would look into the issue.
RSA (23/05/2011)
We asked: "I wish to follow up on our CEO's statement that "our staff remain our greatest asset" and ask a question about our company's corporate social responsibility performance. Paying Living Wage rates (which are currently £8.30 per hour in London and £7.20 for all areas outside London) to all staff and on-site contractors in the UK is being viewed as an important element of corporate citizenship. Last week at its AGM, Standard Life confirmed that all of its directly employed staff in the UK receive a Living Wage and that it is going to introduce discussions on the Living Wage into its procurement processes. Can you confirm whether RSA pays Living Wages to all employees and on-site contractors across the UK? If not, can the board confirm it will give careful consideration to this issue?"
The Chairman responded that he had anticipated a question on this issue. He confirmed that currently 148 employees in the UK are paid less than the Living Wage because the entry level pay grade for those employees is less than the Living Wage rate though higher than the minimum wage rate. He went on to say that RSA hoped to be Living Wage compliant for all UK employees by mid 2011.
After the AGM ended, we were approached by James Wallace the Group Head of CSR who asked us whether we were happy with the response to our question. We mentioned that we wanted to know the position with on-site contract staff and Mr. Wallace confirmed that they were including the issue of Living Wages into their procurement processes. He also asked for further information on the accreditation process.
Shell (17.05.2011)
Dermot Bryers, from South London Citizens, gave his thoughts on speaking at Shell's AGM:
"I felt very priviledged to be able to address the Chairman and CEO of Shell at the Shareholders meeting last Tuesday. I don't mean priviledged in a deferential, cap-doffing, kind of a way, but it is not everyday that you come face-to-face with power and have 60-seconds to influence them. I was speaking on behalf of South London Citizens, of which I am a member in Southwark. The AGM was taking place at the Hague and linked up to a big screen at the Barbican in London. For just a few moments all the people in both rooms, representing a huge amount of power and money, were forced to think about the people working for their organisation, in sites across the UK, who are earning less than a living wage. "Living wage" was perhaps not a term the chairman had heard before, in fact he confused it with the "minimum wage" in his response, but perhaps he went away and looked it up. I like to think that we, as organised people, put the living wage onto Shell's agenda on Tuesday 17th May and it won't be too long before no person working for Shell or any of its contractors is forced to live on poverty wages."
Standard Life (18.05.2011)
On Tuesday, 17th May, our campaigns volunteer Amanda boarded the train in London to attend Standard Life's AGM in Edinburgh and to ask a question about Standard Life's commitment to paying the Living Wage to all of its direct employees and contractors. At the meeting, Amanda posed the following question to Chairman Gerry Grimstone:
"Chairman, you may be aware that the application of Living Wage standards by FTSE 100 companies across their UK operations for all staff and on-site contracted service staff is rapidly becoming a mark of commitment to corporate social responsibility in this country. A Living Wage is the minimum hourly rate necessary for housing, food and other basic needs. For Scotland and all other areas outside London the Living Wage rate is £7.20 per hour. In London it is £8.30 per hour. Can you confirm that Standard Life plc will give careful consideration to the application of Living Wage standards in your UK operations?"
After commenting that paying fair wages was an important part of Standard Life's corporate responsibility strategy, Chairman Grimstone asked CEO David Nish to answer our question. Mr. Nish replied that Standard Life is a Living Wage employer for all of its direct employees. He also confirmed that Standard Life will begin discussions on the Living Wage with its contractors to achieve payment of the Living Wage to all on site employees. Mr. Nish further expressed Standard Life's commitment to continued engagement with FairPensions during this process.
After the meeting, Chairman Gerry Grimstone and CEO David Nish both approached Amanda directly to express their support of the Living Wage and to confirm their further engagement with FairPensions to reach Standard Life's goal of becoming a Living Wage employer.
FairPensions will continue to engage with Standard Life on paying the Living Wage to all of its on site employees.
Standard Life's AGM was Amanda's first. After the meeting, Amanda told us that "it was exciting to see the Chair and the CEO of a FTSE100 company express their firm commitment to paying the Living Wage in front of their shareholders. It was clear during my discussions with them after the meeting that they are very well-informed on the corporate benefits of paying the Living Wage. I was also very happy to have substantive personal conversations with them and with other shareholders about the Living Wage campaign, and I really appreciated the board members' efforts to seek me out to discuss it."
Tesco (20.04.2011)
An account of the Tesco AGM by Simone Pinto from our partners Citizens UK:
At a chance encounter on the 20th April 2011, my son Lucas met the then newly appointed Chief Executive of Tesco, Philip Clarke. Lucas gave Mr Clarke an Easter Egg and asked him to pay his cleaners a Living Wage. Philip Clarke agreed to "Think about it."
I arranged for Lucas to be given the day off school and join myself and a group from Citizens UK to travel to Nottingham, so that he could go to the Tesco AGM and ask Mr Clarke whether he had "Thought about it".
We had only just arrived when Lucas was met and greeted in the foyer by Mr Clarke himself. He shook Lucas' hand and asked why he wasn't at school; Lucas replied that he had been given the day off to come and meet Mr Clarke again and ask him why he was still not paying his cleaners a living wage. Mr Clarke assured us that he would get someone right away to arrange a meeting with a delegation from Citizens UK to explore the issue further. Mr Clarke proposed a meeting with Richard Brasher the UK CEO of Tesco, who has responsibility for pay in the UK.
Mr Clarke went on to engage in an attentive conversation with Lucas before saying goodbye and moving into the hall to take his position with the rest of the board. Lucas and I sat in the second row of the audience and shortly into the proceedings we were passed a note with the date for Lucas meeting with Richard Brasher.
During the "Q&A" session I raised my hand, I was acknowledged by the Chairman David Reid who called for a mic to be brought to me. I passed the mic to Lucas who stood up and thanked Mr Clarke for arranging the meeting to discuss the living wage, Lucas then turned to Mr Brasher and asked him "Mr Brasher are you looking forward to meeting me?" to which Mr Brasher chuckled and replied "Yes".
We (Citizens UK) are very much looking forward to engaging with Tesco and hopefully moving forward with them to make Tesco the biggest Living Wage employer in the UK.
Unilever (11.05.2011)
Julia, a FairPensions supporter and attendee at our AGM training went to the Unilever AGM and posed the following question:
"First of all, may I tell you how great I find your ‘Sustainable Living Plan' and your commitment to ‘Better Livelihoods' for everybody. Chairman, I would like to focus on this country, on the UK, and the livelihood of some of your staff - not the pensions or your salaries - but the Living Wage standards for all staff and on-site contracted service staff, like cleaners. A Living Wage is the minimum hourly rate necessary for housing, food and other basic needs. For London, the new rate was announced last week by Boris Johnson, Mayor of London, as £8.30 per hour. Outside London it is £7.20. Can you confirm whether Unilever applies these rates to all staff and contractors such as cleaners? If not, can you confirm that the board will give careful consideration to the application of Living Wage standards in your UK operations?"
In response the CEO confirmed the company's ethical commitments without mentioning Living Wages. He also stated that he was not aware of the Mayor's involvement in the London Living Wage or the Living Wage rates but welcomed people getting in touch with Unilever and bringing such issues to the company's attention. After the meeting, Julia had an opportunity to speak personally with the CEO who said the company was interested in the issue and gave Julia the name of someone to contact about the campaign. FairPensions will follow up with the company.
Julia went on to say:
"The AGM training provided by FairPensions prepared me very well about how important a short sharp question is to be listened to. Some people go on far too long."
Vodafone (26.07.2011)
Although FairPensions was at Vodafone on another matter our supporter, Barrie Stead, still managed to get a question in on low pay:
"My name is Barrie Stead and I am a shareholder in the Company. My question is about salaries- not the top ones but those at the bottom- an issue in which I know you, Sir John, have taken a personal interest elsewhere. As a shareholder, I have become increasingly concerned to ensure that all the staff in our Company are paid at least the Living Wage - presently £8.30 per hour in London and £7.20 in the rest of the country - which is the minimum that a fulltime employee needs to maintain him or herself and their family without falling into debt. This should apply not only to directly emplyed staff but also to contracted staff who work regularly on the Company's premises. Can you Please reassure me that this is our Company's policy and , if so, how far this policy has been implemented at the present time. Thank you."
The Chairman responded that he did not know the position throughout the company especially on contractors but it would be looked into and he would write. It was possible to raise a supplementary to emphasise that the Company had been considering the issue for some time and a decision was needed.
After the meeting, I was approached by Sir John Bond who introduced Ronald Schellekens , the Group Human Resources Director, and he told him of his personal support for the Living Wage. Mr Schellekens said he was not sure about the position on contractors burt would look into it and get in touch. I responded that I appreciated that it took time to alter contracts but the critical thing was the acceptance of the principle of the Living Wage that the company could work towards. I gave him a copy of the Business Briefing with my name and address and also indicated how to contact FairPensions."
Whitbread (29.06.2011)
We asked:
Mr Chairman,
I would like to congratulate you on achieving gold in the Business in the Community's 2011 Corporate Responsibility Index. As you note in your "Good Together" report, "Increasingly investors are seeing good Corporate Responsibility programmes as an indicator of wider good management and good governance."
Recently you were contacted by a coalition of investors representing assets of £13miillion to ask you to commit to be becoming a Living Wage employer. These investors believe that the application of Living Wage standards is an increasingly important element of any Corporate Responsibility programme, and can bring business benefits including reduced staff turnover, an issue already raised today.
As I am sure you are aware, a Living Wage is the hourly rate (for all staff and on-site contracted staff) that is necessary for housing, food and other basic needs. The rate for London, recently announced by Boris Johnson, is £8.30/hour and the rate for outside London £7.20
I would like you to confirm that the Board, who should be proud of their recent award, will continue this good work by giving careful consideration to the application of Living Wage standards in your UK operations?
In response the Chairman noted that their salary scales in London range from minimum wage to £9.58, and up to £8.60-something outside London; before saying that they were "aware" of the Living Wage - though he gave no commitment to it.
As such, at the end of the AGM I was able to talk to both the HR Director and the Reward Director, and they have agreed to a formal meeting with us. Another positive thing was that afterwards several shareholders came up to us congratulate us on the question, and said that they had heard it asked several times at other AGMs this year.























