BARGAINING FOR THE LIVING WAGE Introduction This guide sets out the key steps in any bargaining strategy for establishing the Living Wage as the minimum rate in an organisation, the campaigning and organising techniques for strengthening that bargaining position and methods of building the Living Wage into procurement policies. What is the Living Wage? The Living Wage is an estimate of the minimum hourly rate of pay needed for a worker to cover the costs that most people would regard as necessary for a basic standard of living. Every November, the Living Wage Foundation announces two new Living Wage rates - one for London and one for the rest of the UK. The UK rate is calculated by the Centre for Research in Social Policy at Loughborough University and is currently set at £8.25 an hour. The London Living Wage is calculated by the Greater London Authority economics team and is currently set at £9.40 an hour. Unlike the legally enforceable National Minimum Wage, whether to pay the Living Wage is a voluntary decision for an employer. Seeking to bargain minimum pay rates up to the level of the Living Wage is a key part of pay strategy for achieving significant improvements for our lowest paid members UNISON’s against the tough pay bargaining background of dramatic public sector budget cuts. The Living Wage forms a stepping stone toward wider goal of achieving minimum UNISON’s pay rates of £10 an hour across the UK. Making the case to an employer Making the case to an employer for paying the Living Wage inevitably involves a moral argument that none of their employees should be paid less than the minimum rate needed for workers and their families to avoid a life of hardship and that everyone should expect the dignity of a decent standard of living from their work. However, employers are also liable to be influenced by the economic benefits of paying the Living Wage, which are summarised below: Improved recruitment and retention Employers introducing the London Living Wage have seen a 25% reduction in staff turnover on average. When introduced by KPMG among its facilities management contract provided by ISS, the policy led to a 40% drop in turnover. Barclays state that its catering staff retention rate increased from 54% to 77% following the introduction of the Living Wage, and its retention rate for cleaning staff rose from 35% to 92%
BARGAINING FOR THE LIVING WAGE Introduction This guide sets out the key steps in any bargaining strategy for establishing the Living Wage as the minimum rate in an organisation, the campaigning and organising techniques for strengthening that bargaining position and methods of building the Living Wage into procurement policies. What is the Living Wage? The Living Wage is an estimate of the minimum hourly rate of pay needed for a worker to cover the costs that most people would regard as necessary for a basic standard of living. Every November, the Living Wage Foundation announces two new Living Wage rates - one for London and one for the rest of the UK. The UK rate is calculated by the Centre for Research in Social Policy at Loughborough University and is currently set at £8.25 an hour. The London Living Wage is calculated by the Greater London Authority economics team and is currently set at £9.40 an hour. Unlike the legally enforceable National Minimum Wage, whether to pay the Living Wage is a voluntary decision for an employer. Seeking to bargain minimum pay rates up to the level of the Living Wage is a key part of UNISON’s pay strategy for achieving significant improvements for our lowest paid members against the tough pay bargaining background of dramatic public sector budget cuts. The Living Wage forms a stepping stone toward UNISON’s wider goal of achieving minimum pay rates of £10 an hour across the UK. Making the case to an employer Making the case to an employer for paying the Living Wage inevitably involves a moral argument that none of their employees should be paid less than the minimum rate needed for workers and their families to avoid a life of hardship and that everyone should expect the dignity of a decent standard of living from their work. However, employers are also liable to be influenced by the economic benefits of paying the Living Wage, which are summarised below: Improved recruitment and retention Employers introducing the London Living Wage have seen a 25% reduction in staff turnover on average. When introduced by KPMG among its facilities management contract provided by ISS, the policy led to a 40% drop in turnover. Barclays state that its catering staff retention rate increased from 54% to 77% following the introduction of the Living Wage, and its retention rate for cleaning staff rose from 35% to 92%