24 June 2023 , 21:59
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Bosses at three retail giants were handed £11million in pay and perks while their staff struggled with payment delays or below-minimum wages.
WHSmith, Argos and M&S were among 202 companies a Government report said had fallen foul of wages legislation.
Errors identified between 2017 and 2019 found the three had left more than 43,000 workers strapped for cash in what the firms said were honest mistakes, all since put right.
But while employees were left struggling, there was no such hardship for their chief executives.
At WHSmith, 17,607 workers were found to have been short-changed by £1m after getting less than the minimum wage.
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WHSmith called the failing a “genuine error”, adding that the workers had all since been reimbursed.
M&S paid its chief executives Stuart Machin and Katie Bickerstaffe £2.53m and £2.22m respectively last year.
Yet the report shows 5,363 M&S staff had to wait longer than the law says they should for £578,391 in wages.
Argos also failed to properly pay 10,399 staff a total of £480,094, due to a “payroll error”. Sainsbury’s, which now owns the store, paid CEO Simon Roberts £4.85m in cash and shares last year – equal to around 225 Argos staff.
Sainsbury’s CEO Simon RobertsM&S said: “An unintentional technical issue from over four years ago was remedied as soon as we became aware. Our pay has never been below minimum wage.”
Sainsbury’s blamed an error dating to 2012, before it bought Argos, and said: “We launched an investigation and put this right.”
Labour MP Richard Burgon said: “Top companies breaking employment law and short-changing low-paid staff is hugely concerning.
“ Yet big business bosses don’t miss a trick in securing eye-watering pay and sky-high bonuses. It’s ironic this comes as this government takes a sledgehammer to union rights.”
The Department for Business and Trade said firms had been fined £7m, and errors affecting 63,000 workers had all been put right. The mistakes had involved wages totalling £5m.
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GMB National Secretary Andy Prendergast said: “The least workers should expect is to be paid properly and on time, yet major employers fail to do so.” Small Business Minister Kevin Hollinrake said: “Firms should know better.”