The Living Wage Foundation's Submission to the Low Pay
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The National Living Wage and Falling Earnings Inequality
The National Living Wage and falling earnings inequality Abigail McKnight and Kerris Cooper Contents Key findings Implications for policy and practice The National Minimum Wage and the National Living Wage Earnings inequality and the NMW/NLW Relationship between NMW/NLW and earnings at 10th percentile Minimum wages can reduce inequality when set high enough Data Appendix: Annual Survey of Hours and Earnings Acknowledgements About the publication and the authors CASEbrief 38 Centre for Analysis of Social Exclusion March 2020 London School of Economics Houghton Street London WC2A 2AE CASE enquiries – tel: 020 7955 6679 Key findings • Inequality in weekly and hourly earnings has fallen since the introduction of the National Living Wage in April 2016. This is the first rapid fall since at least the late 1970s. • The replacement of the National Minimum Wage with the more generous National Living Wage for employees aged 25 and over has led to a compression in the lower half of the wage and weekly earnings distributions. • The National Living Wage now touches the 10th percentile of the wage distribution for all employees (which includes lower paid part- time employees) and the gap between the minimum wage rate and the 10th percentile of the wage distribution for full-time employees has narrowed markedly. Implications for policy and practice • Set high enough, with sufficient ‘bite’, minimum wages can be effective at reducing wage and earnings inequality. • Without a minimum wage (set either through collective bargaining or legislation), market set wages result in low paid workers being paid even lower rates. Increases in their wage rates, to rates approaching 60% of median pay, can be achieved without substantial loss of employment. -
Ontario Living Wage Network Employer Guide 2020
ONTARIOLIVINGWAGE.CA A Guide to Becoming a Living Wage Employer ONTARIO ONTARIOLIVINGWAGE.CA NETWORK A Guide to Becoming a Living Wage Employer CONTENTS Why become a Living Wage Employer?...........................................................................................3 Benefits of becoming a Living Wage Employer................................................................................3 What is the Living Wage?................................................................................................................3 Why is it necessary?........................................................................................................................3 Current Living Wage rates...............................................................................................................4 Conditions for becoming a Living Wage employer.............................................................................4 Phased Implementation...................................................................................................................4 Applying to become a Living Wage Employer..................................................................................5 License Agreement and Annual Employer Fees...............................................................................6 Support............................................................................................................................................7 Updating of the Living Wage...........................................................................................................7 -
Low Pay in the Supermarket Sector
Low pay in the supermarket sector Living Wage Foundation, January 2021 Supermarket employees have been relied on throughout the coronavirus pandemic – a significant part of the army of key workers that has kept the economy going, often facing health risks in the process. Meanwhile, British supermarkets have enjoyed very strong financial performance throughout 2020 as we’ve all spent much more time at home, with record sales recorded in December. That strong financial performance, alongside the crucial role that supermarket employees have played during this crisis, casts these employees’ low pay levels in a harsher light than ever. In this briefing we detail the make-up of the supermarket sector and the pay and working hours that employees in it experience. We find that in April 2020, almost half (45 per cent) of the 900,000- strong supermarket employee workforce earned below the real Living Wage – the only UK wage rate rooted in what it costs to live. In addition, we show that underemployment among supermarket employees – which is consistently well above average – rose in the pandemic despite rising sales and demand for supermarket services. As people across the UK enter another lockdown, we are once again relying on the contributions of supermarket employees and other essential workers. Coronavirus should prompt Britain to rethink how it values this workforce, with a first step being employers in essential sectors paying the Living Wage to all staff. How big is the UK supermarket sector and who works in it? During April-September 2020, UK supermarkets accounted for around 900,000 employees (an increase of 40,000 on the previous six months).i This group spans sales assistants and others on the shop floor, cleaners, back-office staff and management. -
Annual Pay Policy Statement 2018/2019
Summons Item 8. Stockport Metropolitan Borough Council Annual Pay Policy Statement 2018/19 1. Introduction 1.1 This Pay Policy Statement (the ‘statement’) sets out the Council’s approach to pay policy in accordance with the requirements of Section 38 of the Localism Act 2011. The statement also has due regard for the associated statutory guidance including supplementary guidance issued in February 2013 and the Local Government Transparency code 2014. For the first time the statement also incorporates the Councils Gender Pay Gap information as the Council is now required to publish this on an annual basis under the GPG reporting requirements. 1.2 The purpose of the statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees (excluding teaching staff working in local authority schools) by confirming the methods by which salaries of all employees are determined; the detail and level of remuneration of its most senior staff i.e. ‘chief officers’, as defined by the relevant legislation; the responsibility of the Appointments Committee to ensure the provisions set out in this statement relating to the Chief Executive, Deputy Chief Executive, Corporate Directors and Service Directors are applied consistently throughout the Council and recommend any amendments to the Council. 1.3 Once approved by the full Council, this policy statement will come into effect from the following April and will be subject to review on a minimum of an annual basis, the policy for the next financial year being approved by 31 March each year. 2. Other legislation relevant to pay and remuneration 2.1 In determining the pay and remuneration of all of its employees, the Council will comply with all relevant employment legislation. -
Anti-Slavery & Human Trafficking Policy
Anti-Slavery & Human Trafficking Policy (UK) Please note: In countries where ACS International Schools is operating outside of the United Kingdom the UK regulatory framework will provide the foundation for best practice as far as this policy is concerned. All ACS schools will operate in compliance with the relevant legislation of thecountry in which they are operating. Document Status Document Name: Anti-Slavery & Human Trafficking Policy (UK) Document Status: Draft Document Owner: HR Director Responsible: Board Accountable: Chief Executive Next Review Date: October 2021 Change Control Date Produced Version March 2017 Version 1 October 2018 V 1.1 October 2019 V2 October 2020 V2.1 Policy Statement Modern slavery is a crime and a violation of fundamental human rights. It takes various forms, such as slavery, servitude, forced and compulsory labour and human trafficking, all of which have in common the deprivation of a person's liberty by another in order to exploit them for personal or commercial gain. ACS International Schools Ltd (ACS) has a zero-tolerance approach to modern slavery and is committed to acting ethically and with integrity in all business dealings and relationships and to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere in ACS or in any of ACS supply chains. This policy applies to all persons working for ACS or on its behalf in any capacity, including employees at all levels, directors, officers, agency workers, seconded workers, volunteers, interns, agents, and also suppliers, including contractors, external consultants, third-party representatives and business partners. This policy does not form part of any employee's contract of employment and ACS may amend it at any time. -
The Living Wage: Good for Business, Good for Families, Good for Society the Living Wage Good for Families Good for Business Good for Society Page 2
Recommendations for Living Wage Leadership Citizens UK & The Living Wage Foundation The Living Wage: Good for business, good for families, good for society The Living Wage Good for families Good for business Good for society Page 2 Contents 3 Citizens UK and the Living Wage 4 Good for families 5 Who is behind the Living Wage? 6 Good for business 7 The call on Government to show leadership 8 Good for society 9 Frequently asked questions 10 Principal Partners “The Living Wage is a movement of citizens taking action and employers taking responsibility.” Mike Kelly, Head of Corporate Responsibility, KPMG LLP The Living Wage Foundation & Citizens UK, 2013 The Living Wage Good for families Good for business Good for society Page 3 Citizens UK and the Living Wage In 2001 the charity London Citizens brought parents together to share stories on the pressures on family life. It emerged that too many parents were working two jobs just to make ends meet and so had no time to spend with their children. They worked hard but couldn’t earn enough to afford a decent standard of living. From these discussions the Living Wage campaign was born. There are now over 400 accredited Living Wage Employers across the UK. We have seen the first ever Living Wage Olympics and the campaign has put £200 million into the pockets of 45,000 low paid workers1. After twelve years of campaigning on the Living Wage we would now like to share some proposals for Government. These proposals are the result of extensive consultation with our Principal Partners, with employers, and with the member communities of Citizens UK. -
National Minimum Wage and National Living Wage
NATIONAL MINIMUM WAGE AND NATIONAL LIVING WAGE Low Pay Commission Remit 2017 August 2017 NATIONAL MINIMUM WAGE AND NATIONAL LIVING WAGE – LOW PAY COMMISSION REMIT 2017 The Government is committed to delivering an economy that works for everyone. Through the National Minimum Wage and National Living Wage, the Government is ensuring the lowest paid are fairly rewarded for their contribution to the economy. The independent work of the Low Pay Commission (LPC) continues to play a central role in helping to achieve these ambitions. The LPC’s recommendations will continue to guide the Government as it sets the National Minimum Wage rates with the objective of helping as many low-paid workers as possible, without damaging their employment prospects. The Government would like the LPC to monitor, evaluate and review the levels of each of the different National Minimum Wage rates (16-17, 18-20, 21-24 age groups and apprentice rates) and make recommendations on the increase it believes should apply from April 2018 in light of this objective. The National Living Wage was introduced in April 2016 for workers aged 25 and over and has already directly benefitted over a million hard-working people across the UK. The Government asks the LPC to monitor and evaluate the National Living Wage and recommend the level to apply from April 2018. The ambition is that it should continue to increase to reach 60% of median earnings by 2020, subject to sustained economic growth. After 2020, the National Living Wage will rise by the rate of median earnings, so that people who are on the lowest pay benefit from the same improvements in earnings as higher paid workers. -
The Living Wage: an Economic Impact Assessment
The Living Wage: an economic impact assessment www.kpmg.co.uk Executive Summary The national Minimum Wage is currently £6.50. The Living Wage Foundation has set the Living Wage at £7.85 across the UK except for London, where it is £9.15. We estimate that around 6 million people 1 in the UK over the age of 21 currently earn less than the Living Wage. Universal voluntary adoption, that is, raising the income of all those currently earning less than the Living Wage up to the Living Wage, would add £11.1bn, or 1.3% to the national 2 wage bill. The cost to employers would include an additional £1.3bn in employer National Insurance Contributions (NICs), making the total cost £12.4bn. The difference between the Minimum Wage and the Living Wage is 24% (average of London and rest of UK) and the average increment needed to bring all those with lower wages up to the Living Wage would be 15%. The costs of paying a Living Wage vary widely across different employers. For large firms with a small proportion of low paid staff (e.g. cleaners), the cost would be much less than 1.3% of their wage bill. 3 Firms with a large proportion of unskilled workers on their payroll (such as fruit pickers, shelf packers, check-out staff and waiters) will face much larger percentage increases. The cost of paying the Living Wage may not be limited to raising the wages of the lowest paid. It may be necessary to pay more to those above them in the wage hierarchy in order 4 to maintain pay differentials which reward tenure and the associated incentives to strive for promotion. -
A Toolkit for Responsible Investors September 2020
INVESTING IN THE LIVING WAGE a toolkit for responsible investors September 2020 supported by in partnership with JEREMY LAWSON Chief Economist and Head of the Aberdeen Standard Investments Research Institute, Aberdeen Standard Investments High levels of income inequality The underlying causes of inequality Just as importantly, becoming a and in-work poverty are a scourge and in-work poverty are complex. Living Wage Employer can be a vital on our society. Their existence The nature of technological change, part of the development of stronger means that access to economic failures in our education and training and more resilient business models. opportunities are unevenly and systems, government policies As such the Living Wage is a rare often unfairly distributed. They lower affecting taxes, transfers and the example of a corporate policy that participation in the political system regulation of labour and product benefits all stakeholders. Aberdeen and broader civil society, weakening markets all play important parts. It is Standard Investments is therefore the bonds that bind us and our easy for companies to feel impotent proud to be a Living Wage Employer communities together. And there is in the face of these realities. Yet and to be supporting the Living a growing body of evidence that by joining the growing ranks of Wage Foundation to produce this they act as a break on aggregate accredited Living Wage Employers, toolkit. We hope it will accelerate the economic growth, thereby weighing companies can be an active part growth of Living Wage accreditation on most people’s living standards. of the solution, making a genuine and the number of workers Quite simply, they are chronic difference to the lives of their benefiting from its protections. -
Base Code Guidance: Living Wages
BASE CODE GUIDANCE: LIVING WAGES Base Code Guidance: Living wages BASE CODE GUIDANCE: LIVING WAGES 1 1.0 Introduction 2 1.1 ETI Base Code Clause 5 3 1.2 Clause 5 and International Standards 5 1.3 ETI’s expectations of members 6 1.4 Why should companies pay or support living wages? 8 2.0 The journey towards living wages: summary infographic 12 2.1 Preparing for action 14 2.2 Taking action 17 2.2.1 Build the case for action internally 18 2.2.2 Share your commitment publicly 19 2.2.3 Optimise purchasing practices & sourcing strategies 20 2.2.4 Simplify your supply chain 22 2.2.5 Build strong relationships with suppliers 23 2.2.6 Review policies and codes of conduct 23 2.2.7 Promote freedom of association and social dialogue 24 2.2.8 Improve skills of buyers and suppliers 26 2.2.9 Support good HR, pay and productivity systems 27 2.2.10 Advocate for change at a national level 28 2.3 Learning from experience 29 Annex I Underlying causes of low wages 30 Annex II Further information and useful resources 31 Written by: Katharine Earley Photos: Nazdeek, ILO, ETI, Port of San Diego, World Bank BASE CODE GUIDANCE: LIVING WAGES 2 1 Introduction Every worker has the right to a standard of living adequate for change, such as promoting collective bargaining, and for the health and well-being of himself/herself and of his/ ensuring that value is fairly distributed across the supply her family as described in the Universal Declaration of Human chain. -
Long Hours and Low Pay Leave Workers at a Loss
THE JOB GAP ECONOMIC PROSPERITY SERIES Long Hours and Low Pay Leave Workers at a Loss October 2015 By Allyson Fredericksen The Alliance for a Just Society’s mission is to execute regional and national campaigns and build strong state affiliate organizations and partnerships that address economic, racial, and social inequities. www.allianceforajustsociety.org The Alliance’s Job Gap Economic Prosperity series examines the ability of working families to move beyond living paycheck-to-paycheck in today’s econ- omy, seeking to understand both the barriers keeping families from achieving economic prosperity and what actions policymakers can take to help families and communities thrive. www.thejobgap.org ALLIANCEFORAJUSTSOCIETY.ORG 206.568.5400 3518 SOUTH EDMUNDS ST., SEATTLE, WA 98118 TABLE OF CONTENTS Executive Summary ............................................................................................5 Introduction ..........................................................................................................6 National Findings ................................................................................................8 State Findings .......................................................................................................13 California ................................................................................................................................................13 Connecticut ............................................................................................................................................15 -
What It Takes to Make Ends Meet in Perth and Huron Counties Acknowledgements
A Living Wage: What it takes to make ends meet in Perth and Huron Counties Acknowledgements Quality of Life Sub-Committee Janice Dunbar, Community Developer, Huron County Health Unit, Committee Chair Dr. Ken Clarke, Data Analyst Coordinator, Ontario Early Years Centres of Perth-Middlesex Larry Marshall, Executive Director, Huron-Perth Children’s Aid Society Shelley Groenestege, Owner, Ag-Co Products Ltd. Catherine Hardman, Executive Director, Choices for Change Trevor McGregor, Executive Director, Community Living Stratford & Area Dr. Renate Van dorp, Epidemiologist, Perth District Health Unit Sarah Franklin, Project Manager, Perth Community Futures Development Corporation Ryan Erb, Executive Director, United Way Perth-Huron Tracy Birtch, Director of Social Research and Planning Council & Community Impact, United Way Perth-Huron Social Research and Planning Council Perth and Huron Paul Lloyd Williams, Co-chair Jamie Hildebrand David Overboe David Blaney, Co-chair Catherine Hardman Rebecca Dechert Sage Dr. Ken Clarke Shaun Jolliffe Dr. Erica Clark Ryan Erb Barb Hagarty Terri Sparling Tracy Van Kalsbeek Shannon Kammerer Kathy Vassilakos Celina Thomas Hicks Trevor McGregor Tracy Birtch Rebecca Rathwell Shelley Groenestege Thank you to everyone who participated in this study. Contributions made by all participants are greatly appreciated. Community Researcher Creative Layout and Design Eden Grodzinski, JPMC Services Nadine Noble, Idea Nest Graphic Design This research report was supported by a grant from the Labour Market Strategy Project for Perth County, Stratford and St. Marys as well as the Huron County Health Unit. The Council is generously funded by: Social Research & Planning Council City of Stratford, Town of St. Marys, County of Perth, through the Department United Centre – 32 Erie Street of Social Services, the County of Huron, and United Way Perth-Huron.