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Why we need a Living Wage

Jennifer McCarey and Eddie Follan Scottish Living
               Wage Campaign
The Scottish Living Wage


• Currently £7.15 and due to be
  uprated later in the year
• Based on the JRF Minimum
  Income Standard (MIS).
• Scottish Living Wage
  Campaign made up of trade
  unions, NGOs and faith groups
The Need for a Living Wage :Low Pay in Scotland

•    370,000 workers paid less than
     £7.00 per hour
•    Between 05/06 and 07/08 half of
     adults and children living in
     families with low incomes in
     working rather than workless
     households.
•    Women are the worst affected:
     43% earning less than £7.00 were
     women in part time work
•    Women make up half of full time
     workers on low pay
•    Young men working full time are
     more likely to be in a low paid job
     than young full time women
     workers although this is reversed
     as men and women age.
The Need for a Living Wage: Low Pay by Industry

• 51,000 jobs in the food
  beverage and accommodation
  sector pay an annual wage of
  less than £12,000
• 82,000 jobs in the retail sector
  pay less than £6.28
• 92,00 jobs in administrative
  and support services pay
  below the living wage
• Until recently around 20% of
  directly employed staff working
  in the public sector were paid
  less than the living wage
The Need for a Living Wage: Impact of low pay

• The lack of a living wage
  for hundreds of
  thousands of Scottish
  Workers locks them in to
  poverty.
The lack of a living wage is
  bad for:
• Workers
• Employers,
• Communities
• The Economy
The Need for a Living Wage :The Moral Case

• Successive governments have
  emphasised work as a route
  out of poverty
• Living Costs are increasing
  and those at the bottom are hit
  the hardest
• Welfare reforms are set to
  tighten the conditions on
  claiming benefits. Is work
  paying less than a living wage
  the only option?
• There is a moral imperative on
  employers not to pay workers
  a wage that effectively keeps
  them in poverty
The Need for a Living Wage: Where are we now?

• High level political
  Support
• Increasing numbers of
  public bodies becoming
  living wage employers:
  Scottish
  Government, local
  authorities, the NHS
• Little movement in the
  private sector
• Local living wage
  campaigns appearing
The Need for a Living Wage: What Next?

• Living Wage as a
  National Policy
• A Living Wage Unit
• Living wage a key part of
  public sector procurement
• Increasing pressure on
  the private and voluntary
  sectors
To view all the papers in the Whose
       Economy series click here

To view all the videos and presentations
       from the seminars click here

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Why we need a Living Wage - Jennifer McCarey and Eddie Follan

  • 1. Why we need a Living Wage Jennifer McCarey and Eddie Follan Scottish Living Wage Campaign
  • 2. The Scottish Living Wage • Currently £7.15 and due to be uprated later in the year • Based on the JRF Minimum Income Standard (MIS). • Scottish Living Wage Campaign made up of trade unions, NGOs and faith groups
  • 3. The Need for a Living Wage :Low Pay in Scotland • 370,000 workers paid less than £7.00 per hour • Between 05/06 and 07/08 half of adults and children living in families with low incomes in working rather than workless households. • Women are the worst affected: 43% earning less than £7.00 were women in part time work • Women make up half of full time workers on low pay • Young men working full time are more likely to be in a low paid job than young full time women workers although this is reversed as men and women age.
  • 4. The Need for a Living Wage: Low Pay by Industry • 51,000 jobs in the food beverage and accommodation sector pay an annual wage of less than £12,000 • 82,000 jobs in the retail sector pay less than £6.28 • 92,00 jobs in administrative and support services pay below the living wage • Until recently around 20% of directly employed staff working in the public sector were paid less than the living wage
  • 5. The Need for a Living Wage: Impact of low pay • The lack of a living wage for hundreds of thousands of Scottish Workers locks them in to poverty. The lack of a living wage is bad for: • Workers • Employers, • Communities • The Economy
  • 6. The Need for a Living Wage :The Moral Case • Successive governments have emphasised work as a route out of poverty • Living Costs are increasing and those at the bottom are hit the hardest • Welfare reforms are set to tighten the conditions on claiming benefits. Is work paying less than a living wage the only option? • There is a moral imperative on employers not to pay workers a wage that effectively keeps them in poverty
  • 7. The Need for a Living Wage: Where are we now? • High level political Support • Increasing numbers of public bodies becoming living wage employers: Scottish Government, local authorities, the NHS • Little movement in the private sector • Local living wage campaigns appearing
  • 8. The Need for a Living Wage: What Next? • Living Wage as a National Policy • A Living Wage Unit • Living wage a key part of public sector procurement • Increasing pressure on the private and voluntary sectors
  • 9. To view all the papers in the Whose Economy series click here To view all the videos and presentations from the seminars click here