Thursday 11 April 2013

Living Wage in Breckland




Following discussion with the GMB Union and Breckland Labour Members it was agreed that a motion would be put to Breckland Council calling for the authority to support in principle becoming a Living Wage employer whilst research was undertaken into the financial implications of such a decision. The motion in full was:


"Council notes that a growing number of local authorities are now 
paying more or are committed to pay the Living Wage. The Living 
Wage is a level of pay which is based on the principle of decency 
that work should pay at least enough to provide for the essentials of 
life. Council notes that the Living Wage has been independently set 
nationally at £7.45. 
Council supports the introduction of the Living Wage in principle, for 
all its employees and will undertake a review as to the financial 
implications of such a decision and report to Full Council within 6 
months. Subject to this, Council will work towards accreditation as a 
Living Wage employer and will seek to ensure its contractors and 
suppliers of goods and services do likewise"


The Living Wage was first established in 2001 and it is not a new phenomenon although I am sure that the term will be new to many. The Living Wage is a recommended hourly rate of pay set independently and updated on an annual basis. The Living Wage is calculated according to the basic cost of living in the UK and employers can choose to pay the Living Wage on a voluntary basis. The Living Wage has cross party support, with public backing from both the Prime Minister and the Leader of the Opposition. 

There are currently 188 employers nationally paying the living wage including a variety of Councils, including many in London, the National Assembly of Wales, as well as Age Concern, City College Norwich, Norwich, Oxford & Preston City Councils and a whole number of relgiious and faith based organisations and political parties. 

We are all aware that we are going through a very difficult economic situation and employees are feeling the strain on their personal and family finances. Wages have not been increasing despite there being a significant increase in people’s outgoings. The quality of life for many hard working individuals and families has been suffering as a result. The Living Wage recognises that a certain level of income is required in order to have a reasonable quality of life, I believe that this is something that Breckland Council should be advocating for its own employees and where possible for its sub-contractors - a decent standard of life is something that we would all want, and is something that our residents deserve. 


An independent study of the business benefits of implementing a Living Wage policy in London 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.
The Living Wage affords people the opportunity to provide for themselves and their families. 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; enabled them to require fewer concessions to effect change; and made them more likely to adopt changes more quickly.


Unfortunately, the Chairman choose not to allow debate on the item, but to refer it to Committees for discussion, which will then refer the matter back to Full Council for approval, or not. It wasn't dismissed out of hand, just kicked into the long grass for the time being!

No comments: