A low pay epidemic is sweeping the North East, it is claimed, as new figures reveal one in four are paid below a living wage.
A report released today by KPMG estimates that well over a quarter of a million workers receive less than the £7.65 per hour experts say is needed for the basic cost of living in 2014.
The TUC claim that some businesses can afford to pay the living wage, calculated by Centre for Research in Social Policy, but are refusing to do so – and the regional economy is suffering as a result.
The North East Chamber of Commerce, however, says there has been progress and last week published a survey which shows 35% of firms increased workers’ pay above inflation last year.
Northern TUC Regional Secretary Beth Farhat called for a bigger commitment. She said:
“People deserve a fair day’s pay for an honest day’s work.
“But low pay is blighting the lives of hundreds of thousands of families in the North East. And it’s adding to the deficit because it means more spent on tax credits and less collected in tax.
“We have the wrong kind of recovery with the wrong kind of jobs – we need to create far more living wage jobs, with decent hours and permanent contracts.
“The fact is there are employers out there in our region who can afford to pay living wages, but aren’t.
“It is now time for all responsible employers to commit to adopting this standard, which enables workers to earn just enough to be able to live a decent life.”
Catherine McKinnell, Labour MP for Newcastle North, will speak at the Living Wage Summit at Newcastle’s Centre for Life on Thursday as part of a week of action on low wages by the TUC.
Newcastle City Council became the first to introduce a living wage and the authority boosted this to £7.55 in April, and South Tyneside has announced it is to follow suit. Councils in Gateshead, Northumberland and North Tyneside all set up working groups to explore the issue earlier this year.
Ms McKinnell, Labour’s Shadow Economic Secretary, said:
“People in the North East are really struggling with the cost of living crisis and with around one in four workers in our region paid less than the living wage, more must be done to tackle the problem of low pay.
“Finding ways to support and encourage employers to pay the Living Wage is a major part of that.
“It is fantastic to see more businesses and Labour-run councils in our region seeing the benefits of adopting the Living Wage, but it is important that we continue to demonstrate the value, both to employers but also to our region as a whole.”
The Living Wage Summit will also hear from local authorities, trade unions, voluntary and community agencies, such as the Child Poverty Commission and employers.
Speakers include James Ramsbotham, chief executive of the North East Chamber of Commerce, Sarah Vero from the Living Wage Foundation, Reverend Simon Mason and Matt Stripe, HR director for Nestle, who are a committed Living Wage employer.
Source – Newcastle Evening Chronicle, 03 Nov 2014
A jobs warning has been sounded as the region is told of the risk of Scottish independence.
As Chancellor George Osborne set out why the UK would not let a breakaway Scotland keep the pound, Hexham MP Guy Opperman has warned of the regional impact of a new international border on the doorsteps of Northumberland.
The Conservative MP said: “If keeping the pound would not be possible as part of a formal sterling currency union; if the SNP no longer wishes to join the euro, which one can see; and if there is no prospect of an independent country with border control—my constituents are somewhat concerned that there might be a rerun of Hadrian’s wall—where are we?”
He said the situation in Scotland was clearly of concern to the North East, adding: “I am speaking as an MP whose area has a border that divides Scotland and England—my local businesses, the North East chamber of commerce and the local authorities have all indicated that there would be a negative impact on jobs, growth and the development of our respective economies in Scotland and England were the referendum to go ahead.”
> Would that be the same jobs, growth and development (or lack of) that makes the North East the area with the highest unemployment ?
He told MPs: “I speak as a Brit, a mongrel Englishman, a lover of Scotland and an MP whose constituency borders Scotland. Were there to be Scottish independence, I have no doubt that tourism and trade would continue, but it would be naive not to accept that trade on a cross-border basis would unquestionably be affected.
“That is not some Conservative Member of Parliamentspeaking; that is the opinion of the chambers of commerce, local authorities and business groups I have spoken to on both sides of the border.”
> All organizations with the welfare of the common man at heart…
In Edinburgh yesterday the Chancellor ruled out a currency union with an independent Scotland after “strong” advice from the Treasury’s leading official, which was published.
Sir Nicholas Macpherson said that unions are “fraught with difficulty” and raised serious concerns about the Scottish Government’s commitment to making it work. Scotland’s banking sector is too big in relation to national income, the UK could end up bailing the country out.
> Perhaps the North East (and Cumbria, for that matter) should apply to become part of an independent Scotland. Until relatively recently the border was pretty fluid, the old kingdom of Northumbria took in chunks of both, and Hadrian’s Wall is nowadays a long way from the current border (although, of course, neither England or Scotland existed when it was built).
But who do we have more in common with – Scotland or the London city state ?
Source – Newcastle Journal 14 Feb 2014