Today is Workers Memorial Day
One fatality or injury at work is one too many and that’s why we stand strong as part of the campaign for better and stronger legislation to protect the lives of workers across the country, says GMB Scotland. Continue reading Workers Memorial Day
‘Local tax to fund local services should be a vital part of local democracy’ – Alex McLuckie, GMB Scotland
John Swinney is wrong to make light of the impact of ‘draconian’ cuts to budgets for Scotland’s councils, says a leading trade union. Continue reading GMB: Revenue must be raised to blunt impact of ‘draconian’ cuts
But the GMB union argues that we need more than renewable energy to keep the UK’s lights on
Community energy can go from strength to strength following a strong year for the sector, Energy Minister Fergus Ewing said yesterday. From large scale wind farms to small scale hydro projects, over £10 million was last year ploughed back into communities from renewable sources. Continue reading Ewing hails community energy schemes
Banks urged to insist their contractors pay a living wage
GMB Scotland is to hold a protest demonstration outside Royal Bank of Scotland HQ in St Andrew Square on Tuesday to step up the campaign for them to pay a living wage to members employed by G4S and ISS to provide security and cleaning at RBS buildings across Britain. Continue reading High noon: Union plans Tuesday protest at RBS
‘The Low Pay Commission should do what it says on the tin – and fight for the low paid’ – GMB General Secretary Paul Kenny
The Low Pay Commission LPC) has recommended to the Government that the adult rate of the National Minimum Wage should rise by 3 per cent to £6.70 from October – but trade union leaders and anti-poverty campaigners argue the increase simply isn’t enough
The LPC’s aim is to advise on a rate that protects as many low-paid workers as possible without damaging jobs or the economy. The Commission says it has carefully weighed the risk of doing too little to raise the earnings of the lowest paid against the risk of recommending more than business and the economy can afford.
With inflation now forecast at 0.5 per cent, would, if accepted by the Government:
Commenting on the recommendation, David Norgrove, Chair of the LPC said: “Last year we were pleased to recommend the first real terms increase in the value of the minimum wage since the recession. We argued that the minimum wage had proved its worth over the course of the slowdown, increasing relative to earnings generally and protecting the low paid during the downturn in a way not seen before albeit, as with wages for all other workers, its real value fell.
“Sharp increases in the minimum wage would put jobs at risk – not least bearing in mind pressure on low-paying sectors and small firms. We do believe however that the continued recovery, and in particular the impressive growth in employment of the low paid, should this year allow a further increase in the real and relative value of the minimum wage.
“An increase of 3 per cent to £6.70 is a larger real terms increase than last year and, on the basis of the most recent Bank of England inflation forecast, should restore three-quarters of the fall in the real value of the NMW relative to its peak in 2007.
“We judge that the improved economic and labour market conditions mean once again that employers will be able to respond in a way that supports employment. However, our recommendation this year is predicated on a forecast which foresees lower costs for business in fuel and energy, a strong economic performance, significant recovery in earnings across the economy and rising productivity. If these expectations are not borne out over the year we will take this into account when considering next year’s recommendation”.
As well as its recommendation for the adult rate, the Low Pay Commission has also recommended:
However some argue that the increase doesn’t go far enough. The GMB trade union has called on Vince Cable to revise the LPC’s proposal of £6.70 National Minimum Wage from October to make up ground lost during the recession. The GMB says the rate should be at least £6.99 per hour.
Paul Kenny, GMB General Secretary, said “This is a missed opportunity by the Low Pay Commission to uprate the national minimum wage to the real term rate that it was before the recession hit in 2007. Vince Cable should revise the proposal.
“With the economic recovery under way there is no justification for the national minimum wage not going back to where it was in real terms before the recession.
“The Low Pay Commission should have recommended a rate of at least £6.99 per hour from October 2015 to make up the ground lost since the rate was fixed at £5.65 from 1st October 2006 before the recession.
“The Low Pay Commission should do what it says on the tin – and fight for the low paid.
“There has to be a concerted effort to make work pay. If this was done, staff would not need their meagre wages to be topped up by taxpayers with family tax credits and housing benefits so as to make ends meet.
“GMB members tell us that in their experience at least £10 an hour and a full working week is needed to have a decent life free from benefits and tax credits. Less than £10 an hour means just existing not living. It means a life of isolation, unable to socialise. It means a life of constant anxiety over paying bills and of borrowing from friends, family and pay day loan sharks just to make ends meet.”
The Poverty Alliance is spearheading the campaign for a living wage in Scotland.
“The Scottish Living Wage Campaign believes that a job should help you out of poverty, not keep you there.
“The National Minimum Wage is not enough for individuals in Scotland to access the essentials of everyday life. £6.50 per hour will just never be enough to cover the day to day basics, nevermind to save some money or plan for emergencies.
“Hundreds of thousands of workers are being paid wages that basically equate to poverty pay. This is simply not right.”
GMB trade union calls for guilty directors to be barred
A further 37 employers who failed to pay their workers the National Minimum Wage – including one in Edinburgh – have been named today by Business Minister Jo Swinson.
Between them they owe workers a total of over £177,000 in arrears and have been charged financial penalties totalling over £51,000.
The government has already named 55 employers since the new naming regime came into force in October 2013. They had total arrears of over £139,000 and total penalties of over £60,000. One of the previous offenders was private school Cargilfield in Cramond, who were fined last June for underpaying a member of staff by over £3700.
HM Revenue and Customs’ (HMRC) National Minimum Wage enforcement budget will be increased by a further £3 million in financial year 2015 to 2016 – taking the total to £12.2 million. The extra money will go towards increasing the number of HMRC compliance officers to identify businesses that exploit their workers by paying them below the National Minimum Wage.
Business Minister Jo Swinson said: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them.
“We are also looking at what more we can do to make sure workers are paid fairly in the first place. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage face penalties of up to £20,000. We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.”
Employers who are unsure of National Minimum Wage rules can also get free advice via the Pay and Work Rights Helpline on 0800 917 2368.
The 37 employers are:
The 37 cases named today were thoroughly investigated by HM Revenue and Customs after workers made complaints to the free and confidential Pay and Work Rights Helpline.
The scheme was revised in October 2013 to make it simpler to name and shame employers that do not comply with minimum wage rules, but the GMB trade union says the enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members.
Commenting on the latest announcement Martin Smith, GMB National Organizer, said: “Far too few wage-dodging employers not paying the national minimum wage have been bought to justice. Government needs to make a real commitment to making work pay by more aggressively seeking out offenders to prosecute them. The enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members.
“As part of the public disgracing for the firms named GMB is calling for the directors of these companies to be placed on a “wage offenders register” at Companies House and be deemed an unfit person to hold any further directorships.
“There needs to be a recognition that a national minimum wage of £6.50 is near impossible to live on as it is without relying on state benefits. There are bucket loads of evidence that an uplift of at least 50p per hour would help the low paid and start to stimulate the economy and that all the big firms including the retailers can afford it.
“There is no justification for the national minimum wage not keeping up with inflation. The Low Pay Commission should recommend a rate of at least £7 per hour from October 2014 to make up the ground lost since 2006.
“It is time for the Low Pay Commission to do what it says on the tin – fight for the low paid.”
