Employers are reducing recruitment now to avoid paying the new ‘national living wage’ minimum rate of £7.20, according to a new survey.How far would your business go to avoid applying a pay rise? A recent survey of over two thousand employers by Manpower said that employers are trying to minimise the extra costs by cutting recruitment until the end of the year. That’s in advance of a new minimum rate being introduced for the over 25s next April.
Concentrating on groups of self-employed workers, or the under 25s are alternative solutions – which may have the result of promoting more zero hours contracts.
[Read our blog post about zero hours contracts]
Employers’ groups have suggested that companies will be strained by the new living wage scheme, announced in last July’s budget.Independent employers’ organisation the CBI claimed the rise was a “gamble” which could potentially damage Britain’s flexible market. Public sector contractors in the long-term care sector warned of having to pass on costs in higher charges to local authorities and the NHS.Manpower spokesman James Hick also added that firms might try to bypass legislation altogether.But amidst the gloomy outlook and nervous uncertainty wrought by the new minimum wage introduction next year, there is a glimmer of low pay triumph from the catering sector.A UNISON-led campaign has boosted hundreds of the lowest-paid workers in school kitchens across north London, giving cause for cheer.Around 300 dinner ladies at 51 schools across Camden will now be paid the London Living Wage of £9.15 from September, meaning 232 of the lowest-paid school kitchen workers will be about £1,500 better off.
Camden UNISON branch secretary George Binette said the pay increase was “a significant outcome for some very low-paid members” and added that it wanted to secure more gains for contracted staff, including occupational sick pay, to bring working conditions in line with council employees.Where there is politics, as there always is in employment and the labour market, there will always be a degree of upheaval, change and debate. Whether the new national living wage will have a detrimental impact on the jobs market in the long term or short term is still to be seen. Certainly from the outset it can seem unsettling. But it’s equally heartening to see stories of trade unions coming through for their workers, and delivering serious results.If you’re seeking opportunities in catering, construction, or if you’d like advice on pay, please get in touch.
