Living Wage Week
This week 3- 9 November, a range of activities and events will take place throughout the UK to highlight the need for a Living Wage and celebrate Living Wage Employers.
The living wage of £7.45 is calculated by the Centre for Research in Social Policy at Loughborough University based on the premise that this is the minimum pay rate needed to allow workers to lead a decent life, taking into account cost of living. There are approximately 375,000 workers in our region paid less than a living wage, which represents 32% of the workforce.
Many abuses are still going unpunished, with interns and apprentices particularly at risk of being underpaid. Low-paid workers risk being left further behind unless the Government increases the National Minimum Wage and ensures that it at least keeps pace with inflation and average earnings growth.
An independent study examining the business benefits of implementing a Living Wage policy found that more than 80% of employers believe that the Living Wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25%.
Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.
75% of employees reported increases in work quality as a result of receiving the Living Wage.
50% of employees felt that the Living Wage had made them more willing to implement changes in their working practices.
Over 45,000 families have been lifted out of working poverty as a direct result of the Living Wage.
TUC analysis shows that if minimum wage increased to £6.88 – half way between its current level and the Living Wage – it would return £800 million to the public finances. Full coverage of the Living Wage could save the Treasury £3bn a year.
To do our bit, the Northern TUC are coordinating a broad spectrum Living Wage summit on 7th November. Speakers include Rachel Reeves, Shadow Work and Pensions Secretary and Frances O’Grady, TUC General Secretary, as well as panellists from the public, private and voluntary sectors, representing employers, individuals and community, along with those working in economic development, financial inclusion and child poverty.
More and more employers are showing real leadership in supporting the living wage. This event will harness different perspectives from around the region to explore and drive forward this important area of work.
Trade Unions and the Northern Labour Group of MPs agree this is a key priority for our region; stagnating and falling wages have led to a cost of living crisis, and increasingly we are hearing more about the macroeconomic case to boost wages and therefore our local economy. The causes - and effects - of poverty are complex and in order to improve lives there should be a package of solutions across policy areas. The Living Wage can be part of the solution.
Beth Farhat, Regional Secretary, Northern TUC
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