Notice of Exempt Solicitation. Definitive Material. (px14a6g)
May 20 2022 - 9:55AM
Edgar (US Regulatory)
United States Securities and Exchange Commission
Washington, D.C. 20549
Notice of Exempt Solicitation
Pursuant to Rule 14a-103
Name of the Registrant: The TJX Companies, Inc.
Name of persons relying on exemption: Figure 8 Investment Strategies
Address of persons relying on exemption: 1410 W. Washington St. Boise,
ID 83702
Written materials are submitted pursuant to Rule 14a-6(g)(1) promulgated
under the Securities Exchange Act of 1934. Submission is not required of this filer under the terms of the Rule but is made voluntarily
in the interest of public disclosure and consideration of these important issues.
The proponents urge stockholders to vote FOR Proposal 8 (to adopt
a paid sick leave policy for all Associates) at the company’s 2022 AGM.
The shareholder proposal: shareholders of TJX ask the company
to adopt and publicly disclose a policy that all employees, part- and full-time, accrue some amount of PSL that can be used after working
at TJX for a reasonable probationary period. This policy should not expire after a set time or depend upon the existence of a global pandemic.
Background:
| · | The global pandemic highlighted that access to paid sick leave (PSL) is critical
to prevent the spread of disease as well as keep workers and customers’ safe. Despite this, over three quarters of the lowest earning
10% of Americans do not have access to PSL1. |
| · | Furthermore, nearly half of all Black workers and 36% of Latinx workers in
the U.S. reported having no paid time away from work of any kind.2 These statistics highlight that PSL is not just a public
safety measure, but a matter of equity and racial justice. |
| · | While there are currently no federal legal requirements for paid sick leave
in the U.S., 14 states and multiple other jurisdictions have regulations requiring PSL. Companies may choose to implement PSL programs
only where required, or to provide universal PSL coverage to employees. Large companies including Walmart, Levi’s and Apple provide
PSL benefits to all, including full-time and part-time retail employees. |
| · | During the pandemic, essential workers experienced disproportionately higher
rates of illness. In the US, the temporary PSL implemented resulted in an estimated 50% reduction in the number of new COVID-19
cases per day.3 While this is a positive number, the need for PSL
exists outside the global pandemic. |
_____________________________
1 https://www.wsj.com/articles/companies-expand-paid-sick-time-leave-11632413861
2 https://www.bls.gov/news.release/leave.t01.htm
3 https://covid19-sciencetable.ca/sciencebrief/benefits-of-paid-sick-leave-during-the-covid-19-pandemic/
| · | Paid Sick Leave is not just the right thing to do for employees, it is also the financially prudent thing to do and an important part
of a company’s human capital management. Businesses that have implemented PSL have seen reduced turnover and cost savings from: |
| o | Increased workplace stability – studies show the cost of replacing an individual employee can conservatively range from one-half
to two times the worker's annual salary.4 An absence of PSL may negatively impact worker sentiment and lead to a high turnover
rate, which was already a staggering 41% in 2021, a 10% increase from the year before in an increasingly tight labor market. |
| o | Increased productivity – a phenomenon known as “presenteeism” is avoided through paid sick leave. Presenteeism is
the lost productivity from employees not being fully present or functional at work.5 These costs the US economy an estimated
$234 billion annually (adjusted for inflation) which surpasses the cost of absenteeism. These costs are due to lowered productivity and
increased mistakes.6 |
Statement of opposition does not address the core issue:
| · | TJX has not disclosed a Paid Sick Leave policy for its Associates; rather,
TJX has stated it complies with state or local government mandates to provide PSL where those mandates exist. This leaves a significant
portion of TJX’s Associates - primarily lower-wage and/or part-time workers - with no access to PSL. The company’s inconsistent
policies are often inadequate to ensure a safe working environment and put employee’s health at risk. Associates without PSL benefits
are expected by default to show up for work risking not only their own health but the health of others. |
| · | In its statement of opposition, the TJX Board cites its “compensation
programs designed to pay Associates competitively” along with its set of well-being initiatives as appropriate and suitable for
the company’s Associates and business model. Competitive pay and well-being initiatives are important - but they do not directly
address the substance of this resolution, or health and safety concerns related to paid sick leave. Competitive pay and other wellness
programs do not negate the need for PSL. |
| · | Also in its statement of opposition, the TJX Board cites that the company’s approach to employee well-being is suitable for
its “flexible off-price model”. We stress that a universal PSL policy is consistent with this model and in fact, is likely
to help -
not hurt – company cost-saving, as PSL has been shown to reduce turnover by up to 25% and to prevent costly recruitment of new workers
in a tight labor environment.7 Furthermore, other low-price retailers like Walmart currently offer universal PSL to all their
workers, full-time and part-time." |
| · | Adding a universal PSL benefit would fit with TJX’s publicly
stated and strong commitment to diversity and inclusion. Since part-time workers lacking PSL coverage are disproportionately people of
color, PSL is a matter of gender equality and racial justice. Conversely, not
having a universal PSL policy poses reputational risks to TJX as customers are increasingly aware of important issues of social and racial
inequality. |
_____________________________
4 https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx#:~:text=The%20cost%20of%20replacing%20an,to%20%242.6%20million%20per%20year
5 https://www.investopedia.com/terms/p/presenteeism.asp#:~:text=Presenteeism%20refers%20to%20the%20lost,make%20mistakes%20on%20the%20job.
6 https://www.nationalpartnership.org/our-work/resources/economic-justice/paid-sick-days/paid-sick-days-good-for-business-and-workers.pdf
7 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5649342/
Conclusion:
Support for this proposal is warranted and in the best interests of
shareholders. PSL is not only a public health measure but critical to human capital management, racial justice, and gender equality. A
large global company such as TJX must take the initiative to provide PSL to all Associates without discrimination and without being told
to do so by local or national authority. A permanent PSL policy covering all TJX Associates would reflect positively on the company’s
reputation, goals, and productivity. It is both morally and economically the right thing to do.
This is not a solicitation of authority to vote your proxy. Please
do not send us your proxy card.
For more information on the Proposal, please contact Ahmed Aljuboori
at Figure 8 Investment Strategies, ahmed@figure8investing.com and 208-385-0078.
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