DOLLAR TREE, INC. | Competitive Employment Standards, Including Wages and Benefits at Dollar Tree Stores

Previous AGM date
Resolution details
Company ticker
DLTR
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Labour standards
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
That shareholders of Dollar Tree Inc. ask the board of directors to analyze and report on risks to its business strategy in the face of increasing labor market pressure. The report should, at minimum, (1) explain how the Company’s forward-looking strategy and incentives will enable competitive employment standards, including wages, benefits and employee safety and (2) include particular attention to its lowest paid employees across geographies.
Whereas clause
As countries recover from the Covid-19 pandemic, America’s labor-force participation rate remains below pre-pandemic levels. In 2021, the U.S Bureau of Labor Statistics has recorded historic numbers of job openings—last day of October, that number reached 11 million.1 Research shows that quits are at a record high. Experts say that employment conditions, including low wages and benefits, are key factors driving the low participation rates. A report from Mercer2 reveals that frontline workers, low wage, minority and lower-level employees are more likely to be looking to leave—at rates significantly higher than historical norms. Employee recruitment and retention are publicly recognized challenges at Dollar Tree. In October 2021, the company reported, we are experiencing a shortage of associates and applicants to fill staffing requirements at our distribution centers and stores due to the current labor shortage affecting businesses. The same report articulates, the labor shortages at our distribution centers and stores has had and could have an adverse impact on the operating efficiency of our distribution centers and our ability to transport merchandise to and operate our stores, and could result in lower sales.3 Labor shortages are influencing a dynamic policy situation as the federal government, states and localities all reassess their minimum wage regulations. A large number of retailers have raised their minimum wage above legal minimums.4 While Dollar Tree lists increasing minimum wage laws as a risk to its business strategy, investors seek further clarity on how the company is assessing and responding to the evolving regulatory and competitive landscape to sustain long-term consumer and public trust. Employee safety is an additional factor that could be driving labor challenges. Recent reports of ongoing crime and violence in Dollar Tree and Family Dollar stores5 is a concerning reputational risk. At this time, Glassdoor reports that only 44% of Dollar Tree employees would recommend the company to a friend.6 As investors, we seek additional disclosure around what the company is doing to establish employment standards that holds employee safety as a top concern. Commitment is a core value of Dollar Tree and we seek to understand how the Company strategy supports this value with its employees while recognizing the current labor challenges.