Bring back wages councils to tackle living standards crisis

date: 7 March 2013

embargo: 00:01 hours Friday 8 March 2013

In a speech to the Unions21 conference later today (Friday), TUC General Secretary Frances O'Grady, will challenge the Labour Party to introduce policies to reduce growing wage inequality.

She will say that this should include a return to wages councils that could set legally enforced minimum wages in different sectors. They would involve union, employer and expert members, and could go significantly higher than the national minimum wage in sectors able to absorb the costs.

Frances will say:

'We need action to boost wages for low to medium earners.

'The minimum wage must be made just that - with proper enforcement and real punishment for those who break its rules. And we must welcome Labour's new commitment to get tough.

'And we should also go back to expecting it to increase above both wage and price inflation each year.

'We should also use the power of public policy to spread the living wage. It should be made a floor across the public sector, and we should use the power of procurement to spread the living wage in those who expect to do business with, or receive aid from, the public sector.

'As a former member of the Low Pay Commission I think there's a gap. It's never easy setting the same legal minimum for every workplace. And one big issue is that it is obvious that there are many sectors that could easily absorb a higher minimum wage but get the same floor as genuinely hard-pressed companies.

'That is why it was so disappointing to see the landed gentry out in force in the House of Lords this week to abolish the Agricultural Wages Board - something even Mrs Thatcher shied away from.

'Instead we should not just bring back a wage floor in agriculture, but look at renewed wages councils for other sectors too. Just like the minimum wage they would involve employer, union and expert voices.

'But rather than considering the whole economy they would look at the precise details of particular sectors where it is clearly possible to do better than a national minimum. Indeed I am sure some could easily achieve, or even do better, than the living wage.'

NOTES TO EDITORS:

- Frances is speaking at 9.50am at the Unions21 20^th anniversary conference Strong unions: Turning the tide which is taking place at the TUC's Congress House, Great Russell Street, London WC1B 3LS from 9am-3pm on Friday 8 March.

- Co-ordinator of Labour's policy review Jon Cruddas and writer Owen Jones are also speaking at the conference.

- The conference agenda is available at www.unions21.org.uk/events For more information contact Dan Whittle dwhittle@atl.org.uk or 07747 026406.

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk