Castlefield signs investor statement to support lowest paid
Amelia Overd outlines the investor statement signed by Castlefield, urging businesses to support their lowest paid employees.
The UK’s cost of living crisis will disproportionately impact the lowest paid members of our society who spend a larger proportion of their household income on basic necessities. It also further intensifies concerns about the growing levels of societal inequality.
A workforce under financial stress is likely to contribute to a decrease in productivity and increased costs
Increasing levels of household debt and higher levels of in-work poverty pose a significant risk, not only for investors, but also for the wider economy. The Living Wage Foundation’s report – ‘Life on Low Pay’ – estimated that approximately 4.8m UK workers currently earn a wage below the cost of living, with 42% of these workers regularly missing meals.(1)
The national health implications are stark, with mental health also a serious consideration. A workforce under financial stress is likely to contribute to a decrease in productivity and increased costs for businesses, while strike action continues across a number of industries.
Many mechanisms to address the cost of living crisis are found at policy level with the UK government, which has a primary role in ensuring that the basic needs and human rights of its population are met.
we are confident that supporting those on the lowest incomes is in the best interests of society, and ultimately, the wider economy
However, we believe that businesses, in particular the largest publicly listed employers, have an important part to play in shielding those within their workforce on lower wages from the most severe impacts.
We’ve joined a group of 17 long-term investors, organised by CCLA, to publish an investor statement calling on UK-listed businesses to do the following:
- Prioritise support for the lowest paid members of this workforce and, where possible, meet the new Living Wage rates.
- Work constructively with workers and their unions to reach agreements.
- Engage with third-party contractors to ensure that support is being provided for staff working on company premises.
- Be cognisant of the pricing of essential goods and services upon which people are reliant.
- Publicly state how they intend to provide support to their workforce and consumers.
We recognise that the current economic climate has seen businesses faced with many increased costs and supply chain challenges, and see the rationale for controlling costs. However, we are confident that supporting those on the lowest incomes is in the best interests of society, and ultimately, the wider economy.
You can see the full statement here:
https://www.ccla.co.uk/documents/investor-statement-uk-cost-living-crisis/download?inline
Written by Amelia Overd
Sources:
1. https://www.livingwage.org.uk/sites/default/files/Life%20on%20Low%20Pay%202022.pdf