Unions to influence boards

The TUC and its two largest affiliated unions — Unite and UNISON — have launched a group which will use their large pension funds to try to influence corporate governance. The funds of the three organisations currently hold assets of £1 billion and the hope is that more unions will join in.

The group, called Trade Union Share Owners, will target the AGMs of FTSE350 companies in which the pension funds hold shares. It will ensure the funds take a common voting position in accordance with policy guidelines drafted by the TUC.

The group will use their joint voting power to challenge companies on matters that unions are critical of, such as all-male boards; the massive pay gap between directors and employees at the bottom; and excessive director’s pay and bonuses. They will push for companies to become living wage employers and will encourage them to include worker representatives on their boards.