Retail union calls on Low Pay Commission to be ambitious on minimum wage rates | Consensus HR in Herts & Beds
Our Latest blog: Low Pay Commission to be ambitious on minimum wage rates:
Giving evidence on possible future changes to minimum wage rates, the UK’s fifth biggest trade union, Usdaw, has urged the Low Pay Commission (LPC) to be bold when it makes recommendations to the Government this autumn about the rates which are expected to come into force on 1 April 2025.
The union wants the highest possible increase to minimum wage rates, that is above the level of inflation and at least two-thirds of median earnings. It is also calling for an end to “rip-off” youth rates arguing that: “if you’re old enough to do the job, you’re old enough to be paid the rate for the job”.
Its full 17-page response to the LPC, which can be found here, recommends that, at the very least, all adult workers aged 18 should be paid the same rate immediately.
Usdaw has over 350,000 members with most working in the retail sector but with many others in transport, distribution, food manufacturing and the chemical industry. It holds national agreements with four of the UK’s biggest food retailers — the Co-op, Morrisons, Tesco and Sainsbury’s.
The union’s policy is that the National Living Wage should be raised to £12 per hour as soon as possible, as a step towards a long-term ambition of £15, and it urges the LPC to make progress towards this target.
General Secretary, Paddy Lillis, said: “Over the last three years, inflation has increased prices by 22% and food prices have risen even higher, by 30%. Before the cost-of-living crisis Britain desperately needed a pay rise; these sky-rocketing prices have severely devalued wages and too many workers are now at breaking point.”
He highlights Labour’s Plan to Make Work Pay: Delivering a New Deal for Working People
My HR Comment / Advice:
Our HR Comments: Retail union calls on Low Pay Commission to be ambitious on minimum wage rates | Consensus HR in Herts & Beds
Matthew Chilcott, Owner of Consensus HR comments: “From a Human Resources (HR) perspective, there are several compelling reasons why the Low Pay Commission (LPC) should be ambitious in setting minimum wage rates which we have listed below:
- Attracting and Retaining Talent:
- Competitive wages help attract skilled and motivated employees. Higher wages can reduce turnover rates, saving costs associated with recruiting, hiring, and training new staff.
- Employee Satisfaction and Morale:
- Fair compensation is directly linked to job satisfaction. When employees feel they are being paid fairly, they are more likely to be engaged, productive, and loyal to the company.
- Productivity and Performance:
- Better-paid employees tend to be more productive. Higher wages can lead to greater employee motivation, better performance, and higher overall productivity levels.
- Reduction in Absenteeism:
- Adequate wages can alleviate financial stress, leading to better mental and physical health for employees. This can result in lower absenteeism and more consistent attendance.
- Improving Company Reputation:
- Companies known for paying fair wages are more likely to be seen as ethical and responsible employers. This can enhance the company’s reputation, making it more attractive to potential employees, customers, and investors.
- Legal and Compliance Benefits:
- Ensuring wages meet or exceed legal requirements minimises the risk of legal disputes and penalties. Staying ahead of regulatory changes by adopting higher wage standards can provide a buffer against future wage-related legislation.
- Economic and Social Responsibility:
- Supporting higher wages contributes to the overall economic well-being of the community. When employees earn more, they can spend more, boosting local economies and supporting other businesses.
- Innovation and Creativity:
- Employees who feel valued and financially secure are more likely to contribute innovative ideas and creative solutions. A supportive wage policy can foster a culture of innovation within the company.
- Mitigating Risk of Industrial Action:
- Fair pay practices can reduce the likelihood of strikes and other forms of industrial action. This ensures smoother operations and minimises disruptions to the business.
By being ambitious in setting minimum wage rates, the LPC can help create a more motivated, stable, and productive workforce, ultimately benefiting both employees and employers. This also reminds me of my days in Retail and Hospitalities with Forte Welcome Break where all members of the team were paid the same hourly rate regardless of age.”
