Cinemas giant Cineworld is coming under pressure from shareholders to explain its decision not to pay the London Living Wage in a dispute at Brixton’s Ritzy Cinema.
Royal London Asset Management and Aviva Investors, the fourth and fifth-largest investors with 4% each, have begun a “dialogue” with Cineworld.
Ritzy staff have gone on strike six times since April over Cineworld subsidiary Picturehouse’s refusal to pay £8.80 an hour.
Former football star Eric Cantona supported strikers on Saturday, after the boutique chain ended talks.
Aviva said: “We have raised the issue with the company and a meeting is scheduled in the diary to discuss with the board in July.”
The Living Wage is “part of the way we evaluate how a company manages employees, broader community impacts and reputational risk”, said Aviva, which pays the Living Wage to its staff.
Royal London said: “We are in dialogue with the company over this issue.”
Cineworld declined to comment. Picturehouse has said it “cannot build a business plan” around the Living Wage. It increased pay 4% to £7.53, plus £1 if staff meet “customer service principles”.
Legal & General and Standard Life are among other leading Cineworld shareholders which pay the Living Wage.
