‘Living wage’ not ‘minimum wage’ says CWU

A CWU delegation attended a meeting of the Low Pay Commission (LPC) in Truro yesterday (Wednesday) as it prepares to make recommendations to the government in its annual review of the National Minimum Wage.

As a strong supporter of the National Minimum Wage and the work of the Low Pay Commission, the CWU believes that a minimum wage is a central element of a fair society and economy.

Representing the union's position to the panel were Sara Barnicoat, from the youth committee, and Debbie Hardy, assistant secretary for the south west region. They raised important questions about raising the minimum wage to reflect a 'living wage' and supporting the call for the full minimum wage to apply to all workers regardless of age.

Addressing the panel, Debbie argued that many people currently on minimum wage have to supplement their income with benefits. "Cases of in-work poverty are extremely high - particularly in places like Cornwall which is the low pay capital of the UK and has many people in traditionally low paid sectors such as agriculture, tourism and care work.

"A 'living wage'", she said, "should enable workers to achieve an acceptable standard of living above the poverty line, which the current national minimum wage does not allow in many cases."

Debbie explained to the panel that she could see no real benefit to the economy as a whole in having a minimum wage which needs to be supplemented by benefits. Concluding, she said: "People living on the minimum wage do not have expendable income so do not support the growth of their local economies which can lead to a spiral of job losses and poverty in low pay areas."

Sara asked the panel about removing the current age bands that discriminate against young people who live independently and have the same living costs and expenditure as those adults on the minimum wage. She relayed her own experience where she currently works evenings in a pub on minimum wage to supplement her salary. The commission raised concerns that to remove these bands would contribute to youth unemployment. Adding to that, the panel argued, the government would reject this proposal if it were put forward.

Read the CWU's latest submission to the Low Pay Commission for more information and background.