Workers at a Christian anti-poverty charity in London have voted to go on strike later this month in a row over directors’ pay rises.
Employees of the Zacchaeus 2000 Trust (Z2K) accepted a pay rise in January but have voted to take industrial action after the charity offered larger wage increases to two senior managers.
Staff at the charity, who are members of trade union Unite, now plan to undergo two weeks of continuous strike action from 27 May until 6 June to demand fairer pay increases.
Unite general secretary Sharon Graham said: “There is a bitter irony that the workers at an anti-poverty charity have received a minimal pay rise, at a time when living costs remain sky-high, while management stand to benefit from a large increase.
“The fact there is such a difference in pay increases is outrageous and Unite will fight until this gap is made smaller. Our members at Z2K have our full support during this dispute.”
The charity’s chair Emeka Forbes said the higher pay increases for directors were to bring their salaries up to sector norms.
Union: ‘The wrong choice’
Staff at Z2K, who give advice to people struggling with their social security or housing, gained formal union recognition last year after reportedly raising the issue of pay for multiple years.
Unite regional officer Will Searby said: “We’re used to hearing from small charities like Z2k that finances are tight.
“But even within tight budgets, employers make choices – and using resources to uplift the pay of some of the best-paid workers at the organisation rather than distributing these resources more fairly, is the wrong choice.
“We urge management to come back to the table with an improved pay offer as well as a commitment to ensuring fairer pay increases.
“Unite accepts that strike action will have an impact on those who rely on Z2K’s services, but this situation is entirely of management’s making.”
The union did not say how many employees would strike but according to accounts filed with the Charity Commission, the charity had 18 employees in the 2023 calendar year and recorded an income of £892,000.
Charity: Director salaries ‘well below’ sector norms
Unite claimed that most staff were offered a 3% pay rise in January while directors have since been offered a 25% uplift, a figure Forbes disputed.
However, Forbes said his charity, which is accredited by the Living Wage Foundation, was increasing pay for senior staff to bring their salaries closer to sector standards.
He said that the charity had prioritised increases for lower-paid staff since 2022, which had led to its non-director employees being paid 10% above sector averages.
All staff at the charity, including directors, received a 3% cost-of-living uplift in January, he said.
However, while non-directors also received a 3% annual increment, directors have been offered a 5% additional uplift instead.
“Benchmarking has confirmed that director-level salaries remain well below sector norms, reflecting a long-standing focus on prioritising increases for lower-paid roles over leadership pay,” he said.
“To correct this disparity and bring leadership salaries closer to sector standards, we have proposed a modest additional uplift of 5% for directors.
“We believe this is a fair and proportionate step, ensuring we retain the leadership essential to delivering life-changing support to those in need, while maintaining a strong focus on financial sustainability for our small charity.
“Union representatives have previously acknowledged that director-level pay remains below sector standards.
“We regret that some staff have voted in favour of industrial action.
“We remain committed to constructive dialogue and are keen to work together towards solutions that promote fairness for all staff while safeguarding the future of the organisation and the people we serve.”
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