Celtic have told shareholders at their annual meeting that the club will not bow to pressure to pay the new living wage of £8.25 to all employees.
The Scottish league champions remained adamant that it was "not in the best interests of the club" to pass on the recommended increase to all permanent or casual employees.
Celtic said they would review the situation in the new year but their stance was roundly criticised by many of the shareholders present.
Chief executive Peter Lawwell also used the agm to endorse the work of manager Ronny Deila, who has come under fire for the club's failure to make progress in Europe during his two seasons in charge.
And the meeting featured a fiery exchange between the chairman, Ian Bankier, and critics of board member Lord Livingston.
But many shareholders present at Celtic Park (below) wanted answers on Celtic's refusal to agree to pass on the increased living wage for all employees, after chairman Bankier said it was "not in the interests of Celtic to sign up to the living wage".
The new rate of £8.25 an hour, set by an independent foundation to make wages match the cost of living, has been adopted by around 380 firms across Scotland - with the target of the country having 500 living-wage employers by March next year.
Mike Hayes, Celtic's HR manager, said of the increased rate: “They introduced that this month and you have six months to implement that. We review our rates of pay annually. We had a loss this year of £3.5m but we still gave our employees a pay rise.
"We have not made decisions going forward. We will make a decision later in the year. Any increases will apply in the new year. I have been here 13 years and I do feel we are competitive.
“We are not complacement about the rates we do play but we also have an employee engagement initiative. We launched an initiative called Celtic Pride about employee recognition and making people feel valued. I sincerely believe Celtic are a very good employer and I know that Celtic compares favourably with other football clubs.
“We received investors in people accreditation and we are the only professional club north of the border who has that. That shows a recognised standard that we have in our people and the training we provide. We are a good employer which you wouldn’t think if you listened externally to what has been said about us in terms of the living wage.
“We are not complacent, we believe we are a good employer and are always looking for ways to improve.
"Of the 140 staff affected only three members of staff weren’t happy. We have a minimum wage of £7.85 and will review that going forward, as we do every year, in the new year. We are a competitive employer."
However, there were impassioned pleas from various shareholders to pass on the living wage increase.
Patrick Kelly called on the club to reinstate low-paid workers on a bonus scheme and also said that not paying the living wage across the board was an "attitude unworthy of Celtic Football Club; the Celtic way is generosity".
John Gallagher of UNISON added: "It is shameful that Celtic are not recognising the Living Wage."
The meeting opened with applause for Deila, the Celtic manager, while a note of apologies from majority shareholder Dermot Desmond was met with grumbles of discontent.
Bankier (above) opened the AGM and insisted that Deila retained the faith of the board, a sentiment backed up by chief executive Lawwell.
“To be Celtic manager the expectation upon you is to win everything but life does not work that way,” said Bankier. “Last year we won two trophies, this year we are ahead in the league but we have been sharply disappointed by two adverse results in Europe. We can’t buy success, we need to develop what we have.”
Lawwell also maintained that Celtic's financial position remains healthy.
“We have no bank debt and we are stable to take on the challenges going forward,” he said. “We have signed the biggest short deal the club has ever had and we sold 40,000 season tickets – we are third in the UK for that behind only Manchester United and Arsenal.”
Lawwell also revealed that the club will unveil a statue of Billy McNeill, the captain of the Lisbon Lions.
The statue will be ready next month and Lawwell said: "Billy McNeill stands for everything that is good about Celtic.
"He was a leader. He embodied the right values of family, respect and humility. He is a magnificent man on and off the park."
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