Ocado to be grilled on staff pay inequality at upcoming annual meeting
The board of grocery technology business Ocado will be asked about staff pay inequality at its annual general meeting on Monday.
The question is coordinated by responsible investment group NGO ShareAction, which has been working with investors to engage Ocado on its pay policy for low-paid workers since 2019.
ShareAction said Ocado’s board is proposing to award a £14.8m pay package to its chief, Tim Steiner, but “refusing to pay hundreds of its workers a real Living Wage of £12 an hour to reflect the true cost-of-living”.
Dan Howard, head of Good Work at ShareAction, said: “Low wages and the cost-of-living crisis are leaving growing numbers of people in the UK unable to buy food and living in poverty despite being in work.
“Ocado has a responsibility to ensure its lowest paid workers are at least able to cover the cost of everyday goods and services, by guaranteeing all directly employed and third-party contracted staff the real Living Wage both nationally and in London.”
He added: “Ocado has been talking about addressing low pay for five years but has yet to make a long-term commitment. Today we’re calling on the board to pay the real Living Wage – this would make a significant difference to the lives of hundreds of its lowest paid workers.”
Ocado’s industry peers, such as Tesco, Sainsbury’s and Marks and Spencer, have committed to pay their staff the real Living Wage as a base rate.
The company managed to turn around the performance of its retail arm last quarter following a series of price cuts. However, Ocado remains embroiled in a dispute over a final payment related to its online food joint venture with Marks and Spencer.
Marks and Spencer has been holding back a multi-million-pound payout due to missed performance targets.
Ocado has warned of potential legal action if Marks and Spencer does not hand it over.
More recently, the company has faced some tough questions from investors, who have asked the retailer if it would ditch its London listing for New York.
Ocado has reportedly discussed with investors the possibility of moving, and at least one top fund manager told the firm’s management that it wanted the firm to explore the idea properly.
City PM has approached Ocado for comment.