TUC joins Europe-wide campaign for higher minimum wage

The TUC has today (Wednesday) given its backing to a Europe-wide campaign to raise minimum wage rates. 

A new report published today by the European Trade Union Confederation (ETUC) has found that current minimum wage rates fail to lift workers out of poverty in many European countries.

The TUC is calling on the UK government to go further than its pledge to raise the minimum wage to £8.40 by 2020.

When the policy was announced it was expected to deliver £9 per hour by the end of the decade. But low earnings growth means that on current trends the minimum wage will rise to just £8.40 by 2020. Instead, the TUC argues that the minimum wage should rise to £10 as quickly as possible.

The TUC is also concerned that younger workers are getting left further behind, since the full adult “national living wage” only applies to those aged 25 and above.

The TUC wants to see: 

• The Low Pay Commission go beyond the government’s target of 60% of median earnings and get the minimum wage rate to £10 as quickly as possible.
• Young workers (21-24 year olds) should be paid the full minimum rate (currently £7.50 an hour).
• The apprentice rate (£3.50 an hour) should be raised to the level of the young workers rate (£4.05 an hour).
• The apprentice rate should only apply to those undertaking intermediate level apprentices who are aged 16-18 and to 19-20 year olds in the first year of their apprenticeship. Other apprentices should receive the standard rate for their age group (see notes).

TUC general secretary Frances O’Grady said: “The minimum wage needs a serious boost in the coming years. Millions of people are living in poverty despite being part of working households.

“Younger workers deserve to be treated fairly. It’s not fair that young adults are getting less pay than their colleagues for the same work. They face the same living costs.

“This new campaign by the ETUC is much needed. Poverty pay has no place in the UK or anywhere in Europe.”

ETUC Confederal Secretary Esther Lynch said “Minimum wages are far too low. The EU should set a Europe-wide target for increasing minimum wages. This would encourage governments to discuss with trade unions and employers how to achieve fairer minimum wages.

“Raising the minimum wage to a decent level would greatly reduce poverty in every EU country and help drive economic growth.”