Make York a Living Wage city

Transcription

1 Make York a Living Wage city A Guide for Employers

2 What is the Living Wage City Coalition? We are York employers from the public, private and third sectors who already pay the Living Wage. We have decided to work together to promote awareness of the Living Wage and its benefits. We are asking other employers to look seriously at whether they can pay the Living Wage and join us in making York a Living Wage city What is the Living Wage? The Living Wage is an hourly wage rate that reflects some of the real costs of living and is set at the level needed to afford a basic acceptable standard of living. It is currently more than the National Minimum Wage which at 6.1 has fallen behind the cost of living. The rate that applies outside London is set independently every year by the Centre for Research in Social Policy. The current rate outside of London is 7.65 Contents What is the living Wage? 5 Why the Living Wage is important for York 7 What are the benefits of the Living Wage? 10 What else can employers do to support their staff? 11 How to become a Living Wage employer Living Wage employers are expected to Last year pay this rate 6 Million people who from April 2014 were in work were also in poverty. Paying low wages is a false economy as staff who don t have enough to live on are inevitably less engaged, motivated and able to give their job their full attention Shaun Rafferty JRF 2 Make York a Living Wage city A Guide for Employers

3 Why we pay the Living Wage We want lasting change for people and places in poverty, communities where everyone can thrive and a more equal society. We think it s vital that we practice what we preach as an employer. Our commitment to paying the living wage makes complete sense to us, not just because it s the right thing to do but because we also believe that staff who are valued through receiving the living wage are more engaged and productive. Shaun Rafferty, Director of Central Services JRF Case Study We decided in 2012 to pay staff the living wage from January About 150 staff saw a pay rise mostly staff in our Care Services. It took us about a year to work on the pay implications and find the funding to support the rise in costs. In the first year our staff turnover has dropped from 26% to less than 10% making a significant saving in our recruitment and training costs. Our morale survey showed that staff feel appreciated as a result of the pay change. We are working with researchers at York University and other employers to better understand the advantages of paying the living wage and we hope to see impacts on sickness. Why the Living Wage is important for York Low Pay is an important issue in York. Overall employment rates may be high and the local economy stronger than the national and regional picture. This masks a growing problem of low pay in the city, an increasing trend towards part-time work and a widening income gap between the lower and higher paid residents. Nearly 5,000 children in York live in poverty. More than half of them live in working families where the amount earned is not enough to lift the family out of poverty. 27% of jobs in the city are in traditionally low paid sectors such as accommodation and food, retail, arts, entertainment and leisure. A two-tier workforce is developing in the city making York an unaffordable place for lower paid residents to live. More employers paying the Living Wage would make life more affordable for those on low pay and release more spending power into the local economy 4 Make York a Living Wage city A Guide for Employers 5

4 What are the benefits of the Living Wage? The York Fairness Commission recommended that we should make York a Living Wage City. We made the commitment to pay our own staff and also to fund a city-wide Living Wage Campaign as part of our anti-poverty campaign. Cllr James Alexander, Leader City of York Council Since April 201 City of York Council has been paying the Living Wage to 57 staff This has lifted 17% of the workforce out of low pay In November 201 we became an accredited Living Wage employer with an agreed plan to ensure that CYC contract staff are also paid the Living Wage The Council s Trading company is also committed to pay the Living Wage We believe that work should be rewarded by a level of pay that can provide a basic standard of living as a large and progressive employer we want to lead the way for other socially responsible employers in the city More than 400 accredited Living Wage employers across the country are experiencing real business benefits by paying the living wage. Research conducted by KPMG provides evidence of Improved recruitment and retention of staff Higher worker morale, motivation and productivity Reputational benefits of being an ethical employer 70% of employers felt that the Living Wage had increased consumer awareness of their organisation s commitment to be an ethical employer 80% of employers believed that the Living Wage had enhanced the quality of the work of their staff 6 Make York a Living Wage city A Guide for Employers 7 66% of employers reported positive impacts on recruitment and retention 25% fall in absenteeism of contract staff

5 Being at the heart of the voluntary sector in York we really wanted to lead from the front and demonstrate good practice by employing staff on better terms Garry Jones Chief Executive York CVS The Living Wage had the unanimous support of our board in Spring It directly benefitted our conference and day nursery staff who quickly saw an increase in their pay. They feel as valued now as other members of the team and with a greater sense of security they can focus their energies on their work. The promotion of the Living Wage also features as part of our financial advice and support service to other organisations in the sector. Not just because we feel that it is morally right - but because of the benefits it offers to the business as well. The CAB is here to provide the advice people need for the problems they face and improve the policies and practices that affect people s lives. Low pay is driving people into debt and despair. We see the Living Wage as a vital part of the answer George Vickers Chief Executive York CAB For the CAB becoming a Living Wage employer was an important statement of our values as an organisation dedicated to improving the policies and practices that affect people s lives. Thousands of people come to us for help every year struggling to make ends meet even though they are working. We see them caught in a spiral of debt, stress and ill-health because they are not being paid enough. Simply it s the right thing for us to do as a major employer in York. It s the right thing for our employees. And it s the right thing for our communities Angela Darlington Chief Risk Officer at Aviva Life UK As a principal partner of the Living Wage Foundation and a member of the York Fairness Commission, we think it s important to adopt ideas like the Living Wage that benefit our employees and the wider community. Paying the Living Wage also makes absolute business sense to us it s part of our aim to be an employer of choice which helps protect the long term success of our business. By paying a fair wage we attract and keep the best people. We know that it isn t easy for all employers to make this choice. The Living Wage City coalition has experience of the challenges and how to overcome them. We want to share this with other employers who are interested in making York a Living Wage City. 8 Make York a Living Wage city A Guide for Employers 9

6 What else can employers do to support their staff? York St John is a strong supporter of the aims of the living wage coalition and has for a number of years been committed to the principle of the living wage as an anti-poverty measure. Emma Wilkins Director of Student and Staff Services Our Commitment to the Living Wage We have been paying the Living Wage since July 2012 We have and will continue to ensure that paying the Living Wage is a key feature of any tender for the delivery of contracted services at the University. We are actively supporting our Students Union to pay the Living Wage Other ways we support our staff The University, like the Living Wage City coalition, is also proactive in identifying other strategies, not just the Living Wage, to assist employees out of in work poverty. We provide literacy and basic IT training to our lowest earners and also deliver staff development specifically targeted at raising their aspirations in work. We support our lower paid staff to undertake professional qualifications. Where vacancies arise in certain areas we look to offer hours to our existing part-time staff. How to become a Living Wage employer The main requirements to be accredited as a Living Wage employer by the Living Wage Foundation are: 1 Pay all your staff at least the Living Wage ( 7.65) 2 Make sure that contract staff such as cleaners, catering and security staff are being paid the Living Wage The Living Wage journey Becoming a Living Wage employer is a journey. Every organisation is different and will face different challenges on the way. The first step is to decide that you would like to do it. If you are interested in finding out more about the Living Wage talk to one of the members of the York Living Wage City Coalition. Our contact details are on the back page of the leaflet. We can: discuss with you some of the challenges and give advice about overcoming them talk to you about the benefits that we have experienced as Living Wage employers and how they might help your business If you can t do that straight away, make a commitment to the Living Wage for contract staff when contracts are renewed in the future 10 Make York a Living Wage city A Guide for Employers 11

7 Who to contact For general information and advice about the York Living Wage City campaign For information and advice about the benefits and challenges of becoming a Living Wage employer contact one of the Living Wage city coalition members or our supporters. Living Wage City Coalition Pauline Stuchfield City of York Council pauline.stuchfield@york.gov.uk Shaun Rafferty JRF shaun.rafferty@jrf.co.uk Angela Darlington Aviva angela.darlington@aviva.co.uk Garry Jones York CVS garry.jones@yorkcvs.org.uk George Vickers York CAB manager@yorkcab.org.uk Supported by Emma Wilkins York St John University E.Wilkins@yorksj.ac.uk For information about the Living Wage accreditation process