WARRINGTON Borough Council – which earlier this week decided to look into introducing the “Living Wage” into its pay structure – employs 848 people who receive basic pay lower than it.
This is claimed by Warrington North MP Helen Jones – herself a Living Wage campaigner.
She welcomed the move, agreed by the council’s executive board on Monday – but called on the council to make a decision as soon as possible to benefit employees individually and also the town’s economy.
The MP said: “I was staggered to find out that 848 staff employed by the council receive basic pay under £7.45 per hour.
“Like many other councils around the country we can ensure we put that right.
“It is great news that the council are looking at this but I am told it could take until the end of the year to make a decision. I would hope that the process could be speeded up.
“I know that many of the arguments against introducing the Living Wage that will be trotted out are the same of those used against the introduction of the minimum wage. They were wrong then and are wrong now.
“I have written to the council’s chief executive asking him to let me know exactly how much it will cost to ensure the 848 employees are paid a living wage and how that figure is arrived at.
“Initial investigations have resulted in confused answers from officers when asked for even a ball park figure.
“Warrington should be leading the way on this issue – not playing catch up.”
Ms Jones has already publicly supported the introduction of the Living Wage.
She says that in places where it has already been introduced it has helped the poorest in those communities, has helped tackle child poverty and boosted spending in local shops and businesses.
She said: “The introduction of the Living Wage is a practical way the council can help some of the poorest paid people in Warrington. It represent real help and will boost our local economy. The council should lead the way. Once it has been introduced in the council, pressure can be exerted on contractors to do the same.”
Since 2001, the Living Wage Foundation has been campaigning for public and private organisations to set their lowest hourly pay rate to the “living wage” rate.
This is an independently set, annually updated figure which is intended to ensure workers earn enough to provide their families with the essentials of life.
Currently, the rate for organisations outside London, calculated by the Centre for Research in Social Policy at Loughborough University, is currently £7.45 per hour, compared with the minimum wage of £6.19.
WARRINGTON Borough Council - which earlier this week decided to look
into introducing the "Living Wage" into its pay structure - employs 848
people who receive basic pay lower than it.
Council's 848 below Living Wage staff
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Gary Skentelbery
Experienced journalist for more than 40 years. Managing Director of magazine publishing group with three in-house titles and on-line daily newspaper for Warrington. Experienced writer, photographer, PR consultant and media expert having written for local, regional and national newspapers. Specialties: PR, media, social networking, photographer, networking, advertising, sales, media crisis management. Chair of Warrington Healthwatch Director Warrington Chamber of Commerce Patron Tim Parry Johnathan Ball Foundation for Peace. Trustee Warrington Disability Partnership. Former Chairman of Warrington Town FC.
4 Comments
If they suddenly bump up the rate for a load of jobs from £6.19 to £7.45, are they going to then advertise the positions and recruit staff from scratch? Because at £7.45 there are almost certainly better candidates out there willing to do the jobs than those who have been willing to do them up to now for as little as £6.20. And let’s not forget, these jobs also probably come with a public sector final salary pension. Even if the job only pays £15,000 per year, a full public sector pension after 40 years service would give them £10,000 per year (rising with inflation) in retirement. A private sector employee would have to have put aside a pension pot of well over £300,000 to achieve that level of pension – equivalent to an extra £7500 for each one of the 40 years worked. I’m not against the concept of a “living wage”, but ALL of the benefits need to be taken into account – not just the basic hourly rate.
Politcal correctness gone mad!
What is correct is the more employers who pay a living wage, the lower the benefits bill, or, to out it another way , the less the tax payer has to subsidise bad employers as it has during good economic times as well as bad. It seems a good idea for the public sector to lead the way but what is needed is the private sector to follow.
This won’t benefit the employees concerned in the slightest, any increase in the income of someone that low paid will simply result in reduced Tax Credits. So Warrington Council Tax payers get a bigger wages and pensions bill for these employees – and taxpayers across the country all benefit very slightly from the reduction in working benefits. What is needed is simply to raise the minimum wage for over 21’s on a national level and abolish Tax Credits – which are just a subsidy to the profits of big business by enabling them to pay employees wages below the “living” level.