Next Plc under scrutiny
Labour concerns in the retailer's global and local operations
I was very pleased to be asked to moderate a webinar yesterday focusing on the employment practices of Next Plc, hosted by IndustriAll Global Union and Share Action.
As regular readers will know, the company saw a significant vote at its AGM this year in support of the shareholder resolution co-ordinated by Share Action calling for greater disclosure around its pay practices.
The company is also subject to criticism in relation to its involvement in Myanmar, Sri Lanka and Cambodia.
IndustriAll has a write-up of yesterday’s event, reposted below, there is also an investor briefing available that provides more detail.
Investor webinar highlights mounting labour concerns at Next plc
10 December, 2025
A growing list of labour-related controversies at Next plc is drawing scrutiny from unions, workers and investors alike. Many of the concerns were highlighted during an investor webinar co-hosted by IndustriALL and ShareAction on 9 December, where speakers warned that the company’s practices are increasingly out of step with its workforce, several of its peers and even parts of its shareholder base.
Khaing Zar, president of the Industrial Workers’ Federation of Myanmar, delivered a stark account of the situation under the military regime and the risks tied to sourcing from the country.
“Myanmar is experiencing a full-scale humanitarian catastrophe with regional implications… Brands must be able to show they can prevent these violations, but that’s impossible, and therefore companies must leave the country.”
Her warning underscored concerns about Next’s continued sourcing from Myanmar even after workers and unions asked multinationals to withdraw. With the ILO invoking Article 33 in June—its highest sanctioning instrument—member constituents are expected to take measures to address grave rights violations, potentially including ending commercial relations. Beyond reputational damage, Next faces operational and legal risks linked to the potential for forced labour in garments from Myanmar, a danger identified by the US government in 2024.
The webinar also cast a light on escalating tensions in Sri Lanka. Anton Marcus, general secretary of the Free Trade Zones & General Services Employees Union (FTZGSEU), described the abrupt May closure of a factory run by its wholly owned subsidiary, Next Manufacturing Ltd (NML), in the Katunayake Free Trade Zone, where more than 1,400 workers lost their jobs via text message and were locked out of the factory. The facility had been the only one in Sri Lanka with a trade union and a collective bargaining agreement.
“Over 1,200 workers are in the street, suffering even more since the cyclone. The only way to justice would be for Next to reopen the factory,”
he said, noting that relations had previously been good.
These international disputes come at a time when Next — one of the UK’s largest retailers by market capitalization — is reporting its strongest financial performance ever, surpassing £1 billion (US$1.33 billion) in profits even as other retailers struggle. Yet critics argue that the company is prioritizing profits over people.
Next’s approach to wages has become a flashpoint in two key markets. In Cambodia, it remains the only ACT on Living Wages brand not to sign a binding agreement supporting collective bargaining as the route to living wages—effectively reversing earlier commitments under the programme. Meanwhile in the UK, the company has come under fire for refusing to pay a living wage to its 40,000 retail workers. A shareholder resolution filed in May asked Next to disclose how many employees and regular offsite contract workers earn below a living wage; it received 27 per cent support, unusually high for a labour-related proposal. Nonetheless, the company’s CEO dismissed concerns, claiming the largely female and young workforce were not breadwinners.
In his remarks to investors, IndustriALL general secretary Atle Høie said the company’s shifting stance across multiple countries was becoming a serious concern.
“IndustriALL had a good relationship with Next for years, but it has taken an inexplicable turn for the worse. It’s not clear what happened, but this should be a red flag for its investors.”
IndustriALL has also published an investor brief providing detailed information on each case.
The investor relations angle here is fascinating cause that 27% shareholder vote on living wage disclosure is actually massive for a labor issue. Most ESG resolutions get single digits so getting over a quarter of shareholders to back worker pay transparency signals real institutional concern. The Myanmar sourcing risks combined with the Sri Lanka factory closur creates genuine reputational and operational exposurefor investors.