Some 83% of Sainsbury’s shareholders voted against the Living Wage resolution, which would have ensured all permanent and temporary workers received at least £9.90 per hour across the UK.
Its investors significantly voted alongside the Sainsbury’s board at its AGM, which was also backed by two major advisors, Glass Lewis and ISS.
Rachel Hargreaves, ShareAction campaign manager, said: “We’re disappointed that a large proportion [of] shareholders chose to prioritise short-term returns over the real long-term issue: rising inequality in our society.
“As we deal with the continued effects of the cost-of-living crisis, the conversation [a]round low pay isn’t going to go away and both employers and investors need to step up.”
It was the UK’s first-ever Living Wage resolution but only just over a sixth (17%) of shareholders voted in favour of the resolution.
This means workers who are employed via third-party contractors may not receive the Living Wage.