North Wales Assembly Member Mark Isherwood has today backed a motion calling on the Welsh Government to identify measures to support more employers in the public, private and third sectors to adopt the real living wage and become accredited real living wage employers.
The motion, put forward in this afternoon’s Debate on the Living Wage, also welcomed the action taken by 174 employers across the public, private and third sectors in Wales to pay their employees the real living wage.
Speaking in the debate, Mr Isherwood referred to the fact that it was following a campaign by Wrexham-based TCC - Together Creating Communities - that the Assembly introduced a ‘living wage’ on the basis of the minimum wage plus 15 per cent for cleaning and contract staff in 2006, and spoke of his support for the National Living Wage, which stands to benefit 150,000 working people in Wales by 2020.
He said:
“Average earnings in Wales are lower and have grown slower than in other UK nations. According to the Bevan Foundation, 300,000 employees in Wales are paid below the voluntary Living Wage.
“Their 2016 ‘Fair Wage’ Report shows “that the Living Wage would benefit Wales’ employers, employees and their families, and the wider economy with minimal risks.
“The benefits for Wales' employers include increased productivity, improved staff recruitment, attendance and retention, and reputational enhancement” – with very modest impacts on wage bills, although varying with the size and sector of the organisation.
“The benefits for Wales’ employees include more cash, more time and increased well-being” – although the extent of the gains depends on employees' working patterns, welfare entitlement and other household arrangements.
“The wider economy benefits from “increased tax and national insurance revenues, and savings on benefits. Modelling of the impact on total employment suggests that at worst there is a very small risk of very limited job loss and at best some increase in employment”.
“Importantly “many households may find that they are able have slightly higher income without working additional hours, be more financially secure and may be less reliant on benefits. The gender pay gap is likely to narrow due to the overrepresentation of women in Wales' low paid workforce and individual well-being and financial independence can also be strengthened”.
He added: “Welsh Conservatives believe in aspiration, and that hard work should be rewarded with fair pay. Our workforce is the most valuable asset we have, and anything which undermines their efforts is damaging to our economy. It is vital that people get the wages they are entitled to.
“We support the National Living Wage, which stands to benefit 150,000 working people in Wales by 2020. However, we also recognise that the voluntary Living Wage can provide clear benefits in terms of productivity and absenteeism.
“Welsh Conservatives have therefore long supported action to build on the National Living Wage to further support public sector workers.
“Every large business should also aim to pay the voluntary living wage, and we should work with small businesses to explore how they could achieve this on a sustainable basis. Anything which can further improve the living standards of the hardworking people of Wales should be explored.”
