Employers in Edinburgh continue to lead efforts in Scotland to make sure people in work can earn a decent wage that is enough to live on.
The real Living Wage is an independently calculated rate based on the cost of living and is paid voluntarily by employers. This pay rate is updated every year to make sure hourly pay keeps up with the costs of housing, childcare, transport, and heating costs for workers in Scotland.
Efforts to boost the number of businesses paying the real Living Wage has led to a total of 746 accredited employers in the city. This means that a total of 217,887 employees are covered by a Living Wage commitment.
Figures shared ahead of Living Wage Week 2024 (4 – 12 November) reveal that the Living Wage movement in Edinburgh is continuing to grow. Since October last year, there have been 91 new accreditations in the city, and this has uplifted the pay of 686 staff.
Living Wage week provides an opportunity to reflect on the achievements of the movement to date, and to express gratitude to employers for maintaining their commitment, despite challenging business conditions.
Councillor Jane Meagher, Edinburgh’s Housing, Homelessness and Fair Work Convener, and Co-Chair of Edinburgh Living Wage Action Group, said: “Over 80,000 people are living in poverty in Edinburgh and many have been pushed into deprivation because of insecure work. It really can happen to any of us and that is why the Living Wage is such a powerful tool, for making sure people get a fair day’s pay for a fair day’s work.
“In 2024 we’re more determined than ever to work with employers to encourage them to sign up, and it feels like we’re witnessing a real movement. Edinburgh is now home to 20% of Scotland’s Living Wage employers and since October last year more than 90 businesses have signed up. I’d like to express my gratitude to every single one.
“The next few months and years will be critical because we know more Edinburgh-based businesses want to help tackle low pay and insecure work, but that they are under increasing pressure.
“So, as the rate of the Scottish Living Wage rises to £12.60 an hour, the events hosted here in Edinburgh and across the country provide an opportunity to showcase how far we’ve come, while acknowledging that more work is needed.”
Kat Brogan, Managing Director of Mercat Tours and Co-Chair of the Edinburgh Living Wage Action Group commented: “In Edinburgh, the Living Wage movement has continued to grow.
“This is a massive achievement for the city, particularly as many employers are facing difficult circumstances with rising business costs. In this context, committing to the real Living Wage can seem daunting. Yet, it is more important than ever.
“It is not only the cost of business that is rising; the cost of living is also on the up. More and more workers are struggling to keep up with this and are finding themselves unable to afford necessities like food and heating.
“By accrediting as Living Wage employers, organisations are doing their bit to support their employees and to reduce levels of in-work poverty.”
Today is Gender Pension Gap Day – the point of the year from which, if women received their pension at the same rate as men, they wouldn’t get another penny until January.
The fact that we reach this point in the middle of the summer holidays is a stark illustration of the levels of inequality in our pension system.
At just under 37.9 per cent, the gender pension gap is much wider than the gender pay gap and, according to annual research by Prospect, it has barely budged in recent years (it stood at 40.7 per cent in 2015-16 when the trade union started measuring it).
The result is that, taking into account all forms of pension, retired women today have incomes around £7,000 a year lower than retired men.
What causes the gender pensions gap?
There are three main drivers of the gender pensions gap:
Different lifetime working patterns that mean women are more likely to take time out of the labour market or work part-time, most often because of unpaid caring responsibilities
The gender pay gap, exacerbated by a workplace pension system that excludes many low earners altogether
Differing levels of state pension entitlement
The impact of unpaid caring
Previous TUC analysis has highlighted the role of the pay gap – and a workplace pension system that excludes many low earners – in leaving women poorer in retirement.
But the most significant factor in the wildly unequal pension outcomes for men and women is the first bullet point – women are much more likely than men to spend time out of work or working part-time because of caring commitments than men.
This matters because our pension system is designed so that the typical worker will get around half the retirement income they need from the State Pension and half from a workplace pension.
National Insurance credits generally recognise the value of unpaid work such as caring so that people continue to build up state pension entitlement, but those out of paid work stop building up their workplace pension.
These contribution gaps are the biggest factor in women with a defined contribution pension approaching retirement having a pension pot less than half the size of men on average.
How wide is the ‘economic activity gap’?
New TUC analysis shows that women are vastly more likely than men to be out of paid work – and therefore unlikely to be building up a workplace pension – because of caring responsibilities.
This disparity can be seen in every age group, and is particularly wide for groups who face additional barriers in the labour market, such as disabled women and BME women.
Overall, women are 4.5 times more likely than men to be economically inactive – the Office for National Statistics’ term for people neither in or looking paid work – because of caring responsibilities.
The chart below shows that rates of economic activity due to caring responsibilities peak between the ages of 25 and 44, with more than one in 11 women aged 35-39 in this category.
The gap is highest in the late 20s, with women aged 25-29 more than 14 times more likely than male counterparts to be out of paid work because of caring commitments.
Source: TUC analysis of ONS Labour Force Survey, Q1 2024
This is perhaps unsurprising, with working mums much more likely to take time off work to look after kids.
It has a particularly large impact on pension saving, however. These are the years when workers typically have higher incomes than when they are just starting out, meaning their pension contributions are greater, but they are also far from retirement, so those contributions will remain invested for longer and have more time to grow.
The charts below show that BME women are particularly likely to be affected. While white women are four times more likely than men to be out of work looking after a loved one, the figure rises to 6.4 times more likely for BME women.
Source: TUC analysis of ONS Labour Force Survey, Q1 2024
And the chart below shows that people who are themselves disabled, are also much more likely to be out of the labour market because of caring responsibilities to others.
Disabled women are almost nine times more likely than non-disabled men to be in this position.
Source: TUC analysis of ONS Labour Force Survey, Q1 2024
Tackling the gender pension gap
The TUC has long called on governments to get serious about measuring the gender pension gap, and set out a plan to reduce it.
But this is only the first step, and the new government must build on this by setting out a comprehensive plan to reduce the gap
The recently announced Pensions Review is a great opportunity to do this, and we believe this should include an explicit strand on tackling pensions inequality.
But the figures above make clear that it will be difficult to improve women’s retirement incomes without improving the way our pension system recognises the value of unpaid care work.
This would require replacing the workplace pension contributions lost by those out of paid work, and there have been a number of proposals to introduce a Carers Credit that would dothis.
We believe the most straightforward way of doing this is for those out of the labour market with a young child and registered carers to build up additional State Pension, on top of the flat-rate New State Pension.
This would be essentially reintroducing a feature that was removed in 2016. Before this point, people looking after children under 12 and registered for child benefit built up State Second Pension credit in addition to a credit towards the basic state pension.
When it was removed this credit was worth an extra £1.80 a week in pension in 2015-16 terms. So a worker who took five years out of paid work to raise kids, for example, would have built up almost £500 a year in additional State Pension over these years to plug the gap in their workplace pension contributions.
There is no single policy that would fix the gender pension gap, but introducing (or reintroducing) a Carers Credit would be a very significant step in the right direction.
Union tells councils to expect eight days of industrial action
GMB Scotland today confirmed bin strikes will begin within weeks.The union has formally served notice on councils across Scotland to expect eight days of industrial action by members in waste and recycling starting on August 14.
Bins will go unemptied from the smallest villages to the biggest cities, including Glasgow and Edinburgh, where the Fringe and International Festival starts this weekend.
The industrial action comes after pay talks with Cosla, representing Scotland’s councils, stalled. The Scottish Government joined negotiations yesterday [TUESDAY].
Keir Greenaway, GMB Scotland senior organiser in public services, said a rejected pay offer of 3.2% had failed to match the escalating cost of living or the rise offered to council workers in England and Wales.
He said: “We had constructive talks with the Scottish Government and Cosla yesterday but our members are less interested in constructive talks than fair pay.
“The process has gone on too long with too little progress.
“We are more than halfway through the year and there is no more time to waste discussing old offers with new wrapping. Enough is enough.
“Industrial action will start in two weeks unless ministers and local authorities identify the money needed to make an acceptable offer.
“These strikes will be disruptive to all the Scots who rely on our members’ work but would not be necessary if councils had shown a greater urgency and sense of realism.”
Unite announces strike in 18 council areas
Today we served notice to 18 councils that Unite members in Waste and Cleansing, and other services, will strike in 18 councils for 8 days from 14th August.
Strike action is set to begin at 5am on Wednesday 14 August and end at 4:59am on Thursday 22 August at the following 18 councils:
Aberdeen City Council
Aberdeenshire Council
Angus Council
City of Edinburgh Council
Dumfries & Galloway Council
Dundee City Council
East Ayrshire Council
East Renfrewshire Council
Falkirk Council
Fife Council
Glasgow City Council
Inverclyde Council
North Ayrshire Council
North Lanarkshire Council
Renfrewshire Council
South Ayrshire Council
The Highland Council
West Lothian Council.
In Edinburgh
In Edinburgh, all Unite and GMB members in Waste and Cleansing will strike. Unite members in Fleet Services will also strike. Unison’s reballot in Waste and Cleansing opened on 26 July, so results are awaited – this does not impact the timetable of the strike action.
On 24 July, Unison began balloting members across the country in schools, early years and family centres, to prepare for a second wave of strike action if needed. Their ballot closes on 29 August.
Unite local government committee will soon meet to discuss balloting these areas.
Talks with the Scottish Government
Yesterday, Unite officials, including your branch secretary Brian Robertson, and those from Unison and GMB, held ‘positive talks’ with Shona Robison MSP, cabinet secretary for finance and local government and COSLA. Unite warned, however, that a new ‘credible offer’ must be tabled ‘imminently’ and said it would not suspend its scheduled strike action until that occurs.
Unite general secretary Sharon Graham said: “Thousands of Unite members will take strike action next month unless there is a new credible pay offer put on the table.
“Our membership has waited months for an offer which reflects their professionalism and the dedication which they put into delivering vital local services.”
Scottish council workers offered less
The current COSLA pay offer amounts to a 3.2% increase for a one-year period between 1 April 2024 and 31 March 2025.
Unite has said the pay offer ‘grossly undervalues’ Scottish council workers in contrast with the offer made to UK counterparts.
An offer of £1,290 has been made to council workers in England, Wales and Northern Ireland by the National Joint Council (NJC). This equates to a rise of 67 pence per hour or 5.2% for a council worker earning around £25,000 based on a 37-hour week.
Members should note that Unite members south of the border rejected this offer.
In contrast, the COSLA offer of 3.2% equates to £800 or a 41 pence per hour increase. The pay offer difference means that a Scottish council worker would need to earn above £40,000 to match the offer being made to council workers across the UK. This means the lowest paid council workers are being disproportionately hit by COSLA’s current pay offer.
Graham McNab, Unite industrial officer, added: “Unite stands ready to enter into meaningful negotiations at any time but our members need to see a significant shift in the coming days to avert strike action. Strike action is not yet inevitable but action from the politicians must be imminent.
“There is a window of opportunity to resolve this dispute but the politicians should be under no illusions that our members will take strike action if necessary to secure the pay offer which they deserve.”
The city council commented online: ‘Members of the trade unions GMB & Unite are planning strike action in Edinburgh from 14 – 22 August.
‘Bin collections & street cleaning services will be severely disrupted across the city during this time.’
The following services are not expected to run during the strike: – Waste & recycling collections, including all communal and kerbside bins & boxes – Street cleansing including litter bins – Recycling centres – Flytipping collections – Bulky uplift service – Public toilets.
‘This is a national dispute over pay, with strike action planned in other councils across the country unless agreement is reached. Discussions are ongoing between COSLA, trade unions and the Scottish Government with a view to agreeing a pay deal and resolving the dispute.
‘Please prepare for the strike action by visiting our website regularly for the latest updates and advice. Please tell neighbours, friends and family who may not have heard about the upcoming strike so they can prepare.’
Council Leader calls for urgent resolution to pay dispute
Cammy Day has called on the Scottish Government, COSLA and trade unions to find a solution to the national pay dispute and prevent significant disruption during Edinburgh’s busiest month.
Trade unions Unite the Union and GMB today announced plans for strike action across the waste and cleansing service in the Capital from 14–22 August.
Strike action is planned in other councils across Scotland unless agreement is reached to end the dispute.
Councillor Day said:“I’m disappointed that negotiations between Scottish Government, COSLA and the unions have so far failed to avert this action across Scotland.
“While acknowledging that talks are ongoing, including yesterday’s meeting with the Cabinet Secretary, urgent progress needs to be made if we are to prevent significant disruption during one of the most important and enjoyable periods in Edinburgh’s calendar.
“I firmly believe that all council colleagues deserve to be paid fairly for the work they do and have every right to take this action and have their voices heard. As the lowest funded council in Scotland, it’s time for the Scottish Government to properly fund our capital city and its services.
“I’m extremely concerned about the impact this will have on bin collections and street cleaning services, as well as the cleanliness of our city. But I want to assure residents that we’ll be doing all we can to minimise any impact on essential services.
“We’ve published advice on our website for residents and businesses on how to safely and responsibly store their waste – and will continue to post updates as the situation develops. I’d ask residents to please share this information with any friends, family or neighbours who may not be online.
“We’ll also be writing out to businesses to encourage them to remind their customers that they can return their litter back to their premises for disposal, and to use reusable packaging where possible. We’re also working with our transport and hospitality partners to ensure visitors are aware of the strike and its impact on the city.
I urge the Scottish Government and COSLA to stay round the table with the unions and find a way of averting, what will be, a hugely damaging dispute for Edinburgh – and for Scotland as a whole.”
New TUC analysis for our 2024 Young Workers Conference shows that more than 700,000 workers aged 18-20 across the UK are set to be left out of pocket as they are paid a lower rate of the minimum wage (writes TUC’s ALICE ARKWRIGHT).
On 1 April, the National Living Wage will go up to £11.44 per hour and be extended to workers aged 21 and over. But workers under 21 will still be paid less for the same work, simply because of their age and as many as seven in ten workers aged 18-20 could lose out.
Over 700,000 18-20 year olds are paid less than this rate and they miss out on a huge £2,438 per year, or £47 per week, at a time when the cost of living is still sky high. This is completely unfair.
Young workers have been let down time and time again by this Tory government.
They have entered the labour market at a time when insecure work has exploded. Insecure work is characterised by low pay, less training and development, uncertainty in hours and fewer employment rights.
Despite only making up 11 per cent of the total workforce, young workers make up 40 per cent of the 1.18 million workers employed on a zero hours contract.
And young women and young BME workers are more likely to be on them.
Some young workers are not even being paid – a quick search of recruitment sites finds multiple internship adverts with no mention of pay, including one asking for 3 years’ experience.
Imagine working hard in a job for nearly two years – only to be let go with no recourse.
Young people are always hit hardest during times of uncertainty, which they’ve faced time and time again in the last 14 years. Youth unemployment rose dramatically after the financial crisis and more recently during the pandemic. And we are seeing it rise again. The unemployment rate is highest for young BME and young disabled workers.
A lack of decent work, training opportunities including good quality apprenticeships and careers services are keeping unemployment rates higher than they need to be and increases the risk of longer-term unemployment, which has significant scarring effects on young people’s future living standards and wellbeing.
Every day we hear stories about sexual harassment in our workplaces. 2 in 3 young women have experienced harassment at work and they are particularly at risk of harassment from third parties such as clients, customers and patients.
Last year, ministers promised to bring in a new law to put the onus on employers to keep their staff safe from this type of abuse.
But instead, they buckled to Tory backbenchers, massively watered down the legislation and let down young women across the country.
Alongside this failure to protect workers, this government have also introduced new anti-strike laws which mean a generation of young people could lose their right to strike.
We must give young people a good start at working life.
Labour’s New Deal for Working People stands in stark contrast to the Conservatives’ dire record on workers’ rights. It would:
Ban zero-hours contracts to help end the scourge of insecure work.
Ensure all workers get reasonable notice of any change in shifts or working time
Give all workers day one rights on the job, scrapping qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave for all workers.
Remove the discriminatory age bands from the minimum wage to ensure every adult worker benefits from fair pay.
Ban unpaid internships; and
Require employers to ensure workplaces are free from harassment, including by third parties.
And Labour have committed to reform the National Careers Service and the failed Apprenticeships Levy into a ‘Growth and Skills Levy’ that works across all nations and regions.
At Young Workers Conference, members from across our movement will debate what a better future for young people looks like and the need for this transformative New Deal.
New TUC analysis reveals Women’s Pay Day – the day when the average woman stops working for free compared to the average man – is today (Wednesday)
In some industries and in some parts of the country where the gender pay gap is wider, women effectively work for free for even longer
Union body says Labour’s New Deal for Working People would be “huge boost” for working women, by introducing fair pay agreements in social care, banning zero-hours contracts and giving all workers a day one right to flexible work
New TUC analysis published today (Wednesday) reveals that the average woman effectively works for free for nearly two months of the year compared to the average man.
This is because the gender pay gap for all employees currently stands at 14.3%.
This pay gap means that working women must wait 52 days – nearly two months – before they stop working for free on Women’s Pay Day today (Wednesday).
And the analysis also shows that at current rates of progress, it will take 20 years – until 2044 – to close the gender pay gap.
Industrial gender pay gaps
Gender pay gap reporting was introduced back in 2017. However, the TUC analysis shows that – some seven years later – there are still big gender pay gaps in many industries.
And this gap persists even in jobs dominated by female workers like in education and care.
The union body says this is partly because women are more likely to work part-time, where working fewer hours means they earn less overall. And also, because women tend to be employed in lower-paid roles than men.
In education the gender pay gap is 21.3%, so the average woman effectively works for free for nearly a fifth of the year (78 days) until St Patrick’s Day, 17 March 2024.
In health care and social work, where the gender pay gap is 12.6%, the average woman works for free for 46 days until Valentine’s Day, 14 February 2024.
The longest wait for Women’s Pay Day comes in finance and insurance. The gender pay gap (27.9%) is the equivalent of a whopping 102 days, meaning women work for free until Wednesday 10 April 2024.
Gender pay gap by age
The TUC analysis shows that the gender pay gap affects women throughout their careers, from their first step on the ladder until they take retirement.
The gender pay gap is widest for middle aged and older women:
Women aged 40 to 49 have a gender pay gap of 17%, so work 62 days for free until Tuesday 2 March 2024.
Women aged between 50 and 59 have the highest pay gap (19.7%) and work the equivalent of 72 days for free, until Monday 11 March 2024.
Women aged 60 and over have a gender pay gap of 18.1%. They work 66 days of the year for free before they stop working for free on Wednesday 6 March 2024.
The TUC says the gender pay gap widens as women get older, due to women being more likely to take on caring responsibilities. And that older women take a bigger financial hit for balancing work alongside caring for children, older relatives and/or grandchildren.
Regional gender pay gaps
The analysis shows that in some parts of the country gender pay gaps are even bigger, so their Women’s Pay Day is later in the year.
The gender pay gap is largest in the South East of England (18.9%). Women in this region work 69 days for free and they work for free until Friday 8 March 2024.
Women in the East of England (17.7% pay gap) and the East Midlands (17.4%) also work for free until next month (Monday 4 March and Sunday 3 March 2024).
The TUC explains that regional variations in the pay gap are likely to be caused by differences in the types of jobs and industries that are most common in that part of the country, and gender differences in who does these jobs.
TUC General Secretary Paul Nowak said: “Everyone should be paid fairly for the job that they do.
“It’s shameful that working women don’t have pay parity in 2024. And at current rates of progress, it will take another two decades to close the gender pay gap.
“That’s not right. We can’t consign yet another generation of women to pay inequality.
“It’s clear that just publishing gender pay gaps isn’t working. Companies must be required to publish and implement action plans to close their pay gaps. And bosses who don’t comply with the law should be fined.
“Labour’s New Deal for Working People would be a huge boost to working women.
“It would introduce a day one right to flexible working and fair pay agreements to boost pay and conditions in social care – which we know is a predominantly female workforce.
“It would also see mandatory action plans to close the gender pay gap and extending reporting to disability and ethnicity pay gaps.”
“Everyone deserves a fair day’s pay for a fair day’s work.“
A campaign to boost the number of businesses which become real Living Wage accredited has led to 12,000 Edinburgh workers receiving a direct, guaranteed uplift in pay over the past decade.
Since the Scottish Real Living Wage campaign was first launched in 2013, over 700 Edinburgh businesses have made the voluntary commitment to pay the only wage rate designed to rise in line with the cost of living in the UK.
Those commitments have meant total pay increases to the value of almost £100m over the last 10 years for the lowest paid workers in Scotland’s capital city.
Speaking at an event in Edinburgh on Wednesday to mark Living Wage Week Scotland, Councillor Jane Meagher welcomed the achievement but said fair pay must go further.
As Co-Chair of the Edinburgh Living Wage Action Group and Convener of Housing, Homelessness and Fair Work, she said: “We’ve had a record-breaking few years in Edinburgh for Living Wage sign ups and it feels like we’re witnessing a real movement.
“This year alone we have seen more than 100 businesses sign up as real Living Wage employers, and eight Edinburgh employers committing to the new Living Hours standard. This needs to be celebrated, but we cannot be complacent.
“The next few months and years will be critical because we know that poverty in Edinburgh is rising. Just last week, we declared a housing emergency because we simply do not have enough adequate affordable housing in the city to meet demand. With households facing financial insecurity and Edinburgh’s rents some of the highest in the UK, secure wages are as important as ever.
“We know Edinburgh-based businesses want to help tackle low pay and insecure work, but we know that employers are under increasing pressure. They too face a cost of living crisis, high bills and recruitment challenges.
“As the rate of the Real Living Wage rises to £12 an hour, Living Wage Week and the events hosted here in Edinburgh and across the country provide an opportunity to showcase how far we’ve come, while acknowledging that more work is needed. We need to help employers to make the Real Living Wage the norm.
“Everyone deserves a fair day’s pay for a fair day’s work.”
Kat Brogan, Managing Director of Mercat Tours and Co-Chair of the Edinburgh Living Wage Action Group, said: “To any employer who is not there yet but wants to sign up to the Real Living Wage, now has never been a more crucial time. The cost of living – particularly in Edinburgh – remains high.
“As a powerful advocate for Living Wage businesses, our Action Group can provide advice and guide you towards becoming a Real Living Wage employer. It will benefit your team, your business and Edinburgh as a thriving city which offers a fair experience for all.
“The Real Living Wage is a crucial element of ‘Real Living’ – a happy, healthy, fulfilling life – and it’s so important to highlight its importance this Living Wage Week.”
Earlier this year, over 70 delegates from 16 UK towns, boroughs and cities joined the City of Edinburgh Council to call for employers to offer ‘a fair day’s pay for a fair day’s work’ at Scotland’s first Living Wage Places Network event. Edinburgh’s selection followed the Scottish Capital’s recognition as a Living Wage City in 2021.
Christine McCaig, Projects Coordinator at Living Wage Scotland, added: “We are celebrating the continued progress toward ‘Making Edinburgh a Living Wage City’ this Living Wage Week.
“Around one fifth of the 3400 accredited Living Wage employers in Scotland are based in Edinburgh, signalling Scotland’s capital city as a significant contributor to the continued growth of the Living Wage employer movement.
“Despite the challenges facing many businesses, more employers are showing their commitment to tackling in-work poverty and demonstrating leadership and resilience at a time when workers need it most.”
The Edinburgh Living Wage Action Group was established in 2021 with the aim of building the living wage movement in Scotland’s capital city.
Employers who would like to know more about the group, or would like information and advice on becoming accredited can contact policyandinsight@edinburgh.gov.uk.
This winter we’ve seen hundreds of thousands of workers taking industrial action – or striking – to defend their pay and conditions (writes TUC’s Alex Collinson).
These are individual disputes, and it’s important to understand the details in different workplaces. But there is a common cause: a pay disaster that means workers are being paid less in real terms now than they were 14 years ago.
First things first – what’s a strike?
Trade unions exist to defend their members’ jobs, pay and conditions. Normally they try to do that through negotiations with employers, through a process called collective bargaining. But when those negotiations break down, workers have the right to collectively withdraw their labour to help bring the employer back to the bargaining table.
In Britain, the right to strike is governed by complex and restrictive industrial action laws. In summary, to count as ‘protected industrial action’, a strike must:
relate to a work dispute with your own employer
be supported by a valid secret postal ballot with independent scrutiny, in which at least of half the balloted workers have voted (in other words, “not voting” counts as a vote against the strike)
be carried out with notice
In addition, since the Tories’ 2016 Trade Union Act strikes involving workers who provide what the government calls an “important public service” can only be lawful if at least 40% of the workers balloted over the action vote in favour of it.
How much has strike activity increased?
The number of strikes has been on the rise in recent months. The latest data shows that the 417,000 days were lost due to strike action in October 2022, the highest it’s been in 11 years. Some are estimating that this December will see over a million days lost to strike action for the first time since 1989.
But it’s important to put the recent rise in strike action into context. While the number of days lost due to strike action is relatively high compared to the past couple of decades, they’d be fairly standard in any decade before the 1990s.
If more than one million working days are lost due to strikes in December, it’ll be the first time it’s happened since July 1989. But between 1970 and 1989, there were 47 months when this happened. And the 417,000 days lost due to strike action in October 2022 may be the fifth highest on record since 1990, but we regularly saw far higher figures pre-1990.
So what’s behind the rise?
Each individual strike will have different reasons behind it, but there’s some common factors behind the recent rise.
Work has been getting worse for many – lower paid, worse conditions, increasingly insecure. At the same time as workers have seen pay and conditions get worse, businesses have been giving more and more money to shareholders, with dividends paid out to shareholders growing three times faster than wages over the past decade.
And the government has been refusing to properly fund pay rises for public sector workers, failing to introduce a proper minimum wage, and attacking trade union rights, and failing to introduce a proper minimum wage.
The government’s minimum wage remains below the Real Living Wage set by the Living Wage Foundation, and, even with next year’s rise, will be £4.58 below a £15 per hour minimum wage.
Pay
We’ll start with pay. Average real pay (that’s wages once you take inflation into account) is lower now than it was in 2008. It’s not expected to go back above 2008 levels until 2027. This 19-year pay squeeze is longer than any pay squeeze we have official records for, and likely the longest since Napoleonic times.
If wages had grown in line with pre-2008 trends over the past fourteen years, they’d now be £291 per week higher than they currently are.
Over a decade of stagnant pay has directly contributed to the current crisis, leaving many people unable to cope with a sudden rise in prices. While the cost of living crisis is often presented as a recent problem, it’s been building for years.
The situation was already dire before energy bills began to rise. As we went into the pandemic, the number of people in poverty was at a record high, with the majority of those in poverty living in a working household.
The recent rise in prices has made the situation even worse. After years of stagnant pay, workers are now facing double-digit inflation while being offered single-digit pay rises. The latest data shows that, in October, nominal pay rose by 6.4 per cent, while inflation hit 11.1 per cent. Real pay has fallen by £111 per month in the past year alone.
This is particularly bad in the public sector, where pay is rising by just 3.8 per cent, and average real pay has fallen by £185 per month in the past year.
Weak pay growth in the public sector is down to the government refusing to give proper pay rises to workers that kept the country running during the pandemic. Look at health workers, for example. TUC analysis of NHS pay scales shows that:
Nurses’ real pay fell by £1,800 over the last year
Paramedics’ real pay fell by £2,400 over the last year
Midwives’ real pay fell by £2,400 over the last year
This is after a decade of pay suppression by government that has led to nurses earning £5,000 a year less in real terms than they were in 2010. For midwives and paramedics this rises to over £6,000.
Working conditions and job losses
But it’s not just about pay. Many of the current strikes happening aren’t just about getting pay rising, but also protecting jobs, fighting against worsening working conditions, and putting an end to insecure contracts and outsourcing.
Fighting for pay itself is often a fight to improve working conditions. Better pay helps with recruitment and retention of staff.
It’s a political choice
The government spent months clapping for key workers, but now refuses to give them a fair pay rise. This is a political choice. The government could avoid, for example, rail workers, nurses, teachers, paramedics striking by getting around the negotiating table and offering a decent, fair pay rise.
Instead, it continues to offer real pay cuts to public sector workers, often hiding behind pay review bodies while it does. And when it comes to rail workers, the government is actively blocking deals being made. This is all part of wider cuts to public services that have left them understaffed and underfunded.
The government doesn’t agree pay deals in the private sector, but it can set a positive example to employers by offering decent pay rises. It also has the power to deliver increases to the minimum wage that get it to £15 an hour.
But instead, the government has repeatedly attacked trade union rights, making it harder to strike and therefore harder to negotiate for better pay.
Workers are winning
There’s another reason behind the rise in the number of people gaining confidence to take action: workers are winning. People are winning better pay deals and working conditions by joining together and standing up for themselves. Striking workers have won themselves double-digit pay rises across a range of different jobs, from bus drivers to BT engineers, as well as better conditions and an end to outsourcing.
If you aren’t in a union yet, there’s never been a better time to join – talk to your mates and talk to a union. And to learn more on how the TUC is supporting union disputes, see our solidarity hub here.
Thousands of council workers across Scotland have voted to take industrial action which will disrupt schools, early years centres, nurseries and waste and recycling centres across Scotland.
In the largest strike ballot amongst council workers in over a decade, UNISON members in all councils across Scotland overwhelmingly voted to reject the COSLA final pay offer of 2% with nine local authority branches exceeding the required 50% turnout threshold required by the Trade Union Act.
Johanna Baxter, UNISON head of local government said:“COSLA leaders meet on Friday and must put an improved offer on the table if we are to avoid large-scale disruption to council services across Scotland.
“Council workers south of the border yesterday were offered a flat rate uplift of £1925, which for those on the lowest pay equates to a 10.5% increase. You have to wonder why council workers north of the border have only been offered a measly 2% increase when the cost of living continues to spiral. UNISON have been calling for a flat rate payment to help those on lower incomes. Most council workers earn less than £25k per year.
“It is clear now that local government workers have had enough and are prepared to strike in the coming weeks unless we see a sensible offer, from COSLA, on the table on Friday.
“This is the largest strike ballot by local government workers in over a decade and the first-time workers across Scotland have voted to take strike action in these numbers. It really shouldn’t take this for them to receive the recognition, respect and reward that they deserve.”
130% rise in working claimants during the pandemic
Low-income workers facing “perfect storm” this spring unless ministers improve “woefully inadequate” levels of support, warns union body
Cost-of-living crisis already depressing value of UC, TUC analysis reveals
*NEW POLL* shows many families already struggling to make ends meet
The TUC has warned that millions of low-income workers face a “perfect storm” this April with universal credit (UC) falling behind the cost of living as energy bills and taxes rise.
The warning comes as new TUC analysis reveals that the number of workers on UC has increased by 1.3 million since the eve of the Covid-19 pandemic.
The analysis of official statistics shows that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over one million on the eve of the pandemic in February 2020.
This represents an increase of 130 per cent over the last two years and means 1 in 14 (7.2 per cent) working adults now claim UC.
The TUC says the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid, with millions facing a cost-of-living crunch this year.
Basic value of universal credit now lower than at start of pandemic
The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation.
TUC estimates show that the value of UC has fallen by £12 a month in real terms when measured against CPI inflation and £21 a month when measured against RPI inflation compared to just before the pandemic (February 2020).
The TUC says this trend will only get worse in the months ahead with inflation forecast to rise further.
Struggling to cover the basics
The TUC warns that millions of low-paid families face a crunch point in April when energy bills and national insurance contributions go up – at the same time as UC continues to fall in value.
New polling – carried out for the union body before last week’s energy cap announcement and Bank of England forecasts – shows that many are already struggling to make ends meet:
One in eight workers (12 per cent) say they will struggle to afford the basics in the next six months. And a fifth of working people (22 per cent) say they’ll struggle to afford more than the basics.
Low-paid workers are more likely to be struggling. One in six (17 per cent) low-paid workers (those earning less than £15,000 a year) say they will struggle to afford basics in the next six months, and three in 10 (29 per cent) say they’ll struggle to afford more than the basics.
Parents of young children, disabled workers, key workers and BME workers are more likely to be struggling:
Nearly one in five families (18 per cent) with kids under 11 will struggle to afford the basics
Over one in five (21 per cent) disabled workers will struggle to afford the basics, compared to 10 per cent of non-disabled workers
14 per cent of key workers say they’ll struggle to afford the basics in the next six months, compared to 10 per cent of non-key workers
14 per cent of BME workers say they’ll struggle to afford the basics in the next six months, compared to 11 per cent of white workers
The poll also reveals that a fifth of workers (21 per cent) say they have Christmas debts to pay off this year – a number that rises to over a quarter (28 per cent) for workers with children of school age.
Better support needed
The TUC says the government must do far more to help struggling households to get through the months ahead.
The union body says the cost-of-living support announced by the Chancellor on Thursday is “woefully inadequate” and will provide families with just £7 extra a week – most of which will have to be repaid.
The TUC is also calling for UK Government to use the upcoming spring budget to:
Increase to UC to 80 per cent of the real Living Wage.
Introduce a windfall tax on energy companies, using the money to reduce household energy bills
Boost the minimum wage to least £10 an hour now
Work with unions to get pay rising across the economy
TUC General Secretary Frances O’Grady said: “Millions of low-paid workers face a perfect storm this April.
“At the same time as energy prices and national insurance contributions shoot up, universal credit is falling in value.
“The government must do far more to help struggling families get through the tough times ahead. The support package announced by the Chancellor last week is woefully inadequate.
“Universal credit urgently needs boosting and we need further action to reduce fuel costs for those battling to make ends meet.
“Oil and energy companies shouldn’t be making bumper profits, while many struggle to heat their homes.
“If ministers fail to do what is necessary, more households will be pushed below the breadline.”
On the need to boost pay, Frances added: “The best way to give working families long-term financial security is to get pay rising across the economy.
“That means increasing the minimum wage to at least £10 an hour now, and ministers requiring employers to negotiate sector-wide fair pay agreements with unions.”
