Plymouth City Council approves living wage

Some council workers in Plymouth could getting up to  a 20% pay rise this year following a living wage agreement yesterday (22/07/2013).

Plymouth City Council debated a proposal to introduce a living wage pay rate for some of its lowest paid staff as part of the manifesto promises of the council’s Labour group majority.

The council has already set aside cash for the pay rise, which could be brought in during this financial year.

A council spokesman said: "We can't predict exact numbers at the time of implementation; however we currently have 305 corporate staff and 699 schools staff earning below the living wage."

The living wage for Devon is set at an hourly rate of £7.45. This is compared to the current £6.19 minimum wage for adults nationally.

Plymouth City Council is the second council in Devon to bring in a living wage following Exeter City Council’s decision to introduce the scheme for its workers from January 2014.

The living wage is based on the real living costs of low-paid workers by reflecting the cost of rent, food and travel. The wages are intended to ensure that all working people enjoy a reasonable quality of life.

Research shown to the council, suggests that a living wage increases productivity with a decrease in staff turnover and absences.

However there are concerns that the extra cost of a living wage cannot be justified during a period of austerity cuts.

Devon County Council decided against introducing a living wage last year arguing that the £1 million cost of the living wage would mean cutting local services, making redundancies or making a significant rise in council tax at a time when local government budgets are being reduced.

The county council currently employs 3,500 staff who would receive a pay rise if a living wage was brought in. The majority of these staff are employed in the Devon school system.

Stuart Fegan of the GMB union, which represents many low-paid workers, said they were "absolutely in agreement". "As a union we are a signatory to the Living Wage and we have been involved in campaigning. We are delighted that Plymouth's Labour group made it a manifesto pledge.

"Increasing pay for the lowest-paid earners reduces dependence on benefits. The lowest-paid tend to spend the money, not to save, so it puts more cash into the local economy."

Diana Beal of the town hall union Unite welcomed the move. But she said the union had not yet received all the information it needed to understand the impact.

"There is always the potential for a negative impact on part-time workers such as cleaners," she said. "It might well tip some people over the benefits threshold."

Deputy Leader of the Council, Councillor Peter Smith said: “Adopting the principles of the living wage has so many benefits that I’m not sure why we haven’t done it before.

"Employees on the lowest wages feel happier in their work and end up taking more money home, the Council has a productive workforce and the economy grows as more money in spent in the shops.

“It would be excellent if other larger employers in the city follow suit. We have seen in so many ways what good can come from collectively coming together and supporting the city.”

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