Union News (30 March 2024)

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Welcome to Union News, your guide to what’s happening in the UK trade union and Labour movement. Reporting is by Pat Harrington and music is by Tim Bragg. In this edition: Salaried Workers Face Minimum Wage Cheating: Unions Sound the Alarm, Teachers Rally for Fair Pay and Improved Conditions at NASUWT Conference, and GMB Secures Day One Sick Pay for 19,000 Care Workers.

Salaried Workers Face Minimum Wage Cheating: Unions Sound the Alarm

Unions are cautioning that office workers and other salaried staff may be vulnerable to being short-changed on the minimum wage.

Prior to the implementation of the new minimum wage rate on Monday, the TUC highlighted that salaried employees receive a fixed annual payment irrespective of fluctuations in their working hours.

According to the TUC, online job postings still advertise salaried positions below the upcoming minimum wage, potentially resulting in illegal underpayment for salaried workers if their salaries remain stagnant.

The TUC further warned that desk-based office workers often face expectations of unpaid overtime as part of their job responsibilities.

Paul Nowak, TUC’s general secretary, emphasized, “Employers have a legal obligation to pay their workers at least the minimum wage. However, many workers are being deprived of their rightful pay by unscrupulous employers who opt to pay unlawfully low wages. This issue affects workers across various professions, including desk-based office roles, where the expectation of unpaid overtime is common.”

Highlighting the disparity between the official adult minimum wage rate of £11.44 per hour and the voluntary “real” living wage of £12, and £13.15 in London, Katherine Chapman, director of the Living Wage Foundation, stated, “While the increase in the statutory national living wage is positive news for millions of low-paid workers, it still falls short of adequately addressing the true cost of living. Over 14,000 employers have pledged to pay the real living wage, recognizing its benefits not only for workers and their families but also for businesses in terms of improved staff retention and productivity.”

Responding to these concerns, a government spokesperson reiterated that paying the minimum wage is a legal requirement for all workers, including those in office roles. The spokesperson urged any employees who suspect they are not receiving their correct wages to either address the matter with their employer or seek assistance from Acas confidentially. Furthermore, the spokesperson highlighted the significant increase in the national living wage for workers aged 21 and above, emphasizing the positive impact this will have on their annual earnings.

Teachers Rally for Fair Pay and Improved Conditions at NASUWT Conference

At NASUWT’s annual conference, teachers unite behind a push for pay restoration and better working conditions. According to the union, classroom teachers have seen their starting salaries plummet by 21% in real terms between 2010 and 2023, adjusting for RPI inflation.

Addressing the assembly, senior vice-president Wayne Broom emphasized the urgency of tackling the crisis in teaching recruitment, retention, and morale. He pledged the union’s commitment to lobby all political parties ahead of the general election to secure a new deal for teachers, including real terms pay restoration nationwide.

The proposed deal also seeks to enhance measures protecting teachers from violence, assault, or harassment, establish a national framework for statutory contractual conditions of service, enforce a maximum 35-hour working time limit, and ensure equal rights for supply and substitute teachers.

and finally, GMB Secures Day One Sick Pay for 19,000 Care Workers

In a landmark victory for the care sector, the GMB union has secured day one sick pay for 19,000 care workers. This significant win comes as HC-One, the UK’s largest care provider, agrees to a pay deal granting carers the contractual right to receive at least Statutory Sick Pay (SSP) from the first day of any absence.

Previously, carers faced a three-day waiting period before receiving sick pay, creating a concerning incentive for workers to continue working while unwell and potentially spreading illnesses among the vulnerable individuals they care for.

The breakthrough agreement follows a GMB survey revealing that one in four HC-One care workers were contemplating leaving their jobs due to inadequate pay.

Natalie Grayson, GMB National Officer, expressed outrage at the previous lack of sick pay provisions, stating, “For any worker to suffer financial hardship due to illness is unacceptable. However, in the care sector, this issue is particularly alarming and poses a significant risk to the well-being of those under their care.”

She continued, “Day one sick pay is a fundamental right that care sector workers deserve. This victory signifies a pivotal moment in the culture of the entire care industry. But our fight doesn’t end here. GMB will continue to advocate until these dedicated professionals receive a fair wage of at least £15 per hour.”

The agreement marks a crucial step forward in ensuring the welfare of care workers and underscores the ongoing efforts to address longstanding issues within the sector.

Picture credit
Office image
Image by Nattanan Kanchanaprat from Pixabay

Nine Northern Ireland Firms Exposed for Minimum Wage Violations

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Nine companies in Northern Ireland have been publicly criticized by the government for violating the minimum wage law. These companies owe a total of £55,200 to 534 workers following investigations by Her Majesty’s Revenue and Customs since 2017.

The companies in Northern Ireland that failed to pay their employees the correct wages are:

  • Victor Foster Poultry Services in Markethill, owing £33,045 to 284 workers.
  • Avondale Foods in Craigavon, failing to pay £9,007 to 149 workers.
  • Hatch Brothers, trading as Genesis Crafty (now under new ownership) in Magherafelt, owing £4,439 to 7 workers.
  • Reahs Restaurant, trading as The Portmor in Blackwatertown, failing to pay £3,292 to 8 workers.
  • O’Connor’s Bar and Restaurant in Dromore, Omagh, owing £2,413 to 1 worker.
  • WGAB Limited, trading as Excel Clothing in Newtownards, failing to pay £2,369 to 18 workers.
  • Curran Court Hotel in Larne, owing £2,003 to 63 workers.
  • 727 Your Store in Craigavon, failing to pay £580 to 1 worker.
  • Edenmore Golf & Country Club in Magheralin, owing £506 to 11 workers.

In total, 202 employers across the UK have been ordered to repay workers and face penalties of nearly £7 million. These breaches have left 63,000 workers out of pocket.

The worst offender, according to HMRC, is high street retailer WH Smith, which failed to pay around £1 million to 17,607 workers. The company attributed this failure to an error related to its company uniform policy. Other prominent retailers, including Marks & Spencer and Argos, are also on the list.

Pat Harrington, General Secretary of the Solidarity union, emphasizes the importance of paying the legal minimum wage and condemns the anti-social and wrong nature of not doing so. Harrington states, “Paying the legal minimum wage is non-negotiable, and all businesses, whatever their size, should know better than to short-change hard-working staff.”

The employers named on the list were found to have underpaid workers through various means, such as deducting pay from workers’ wages (39% of employers), failing to pay workers correctly for their working time (39% of employers), and paying incorrect apprenticeship rates (21% of employers).

Bryan Sanderson, chair of the Low Pay Commission, further emphasised the significance of the minimum wage as a guarantee to ensure all workers receive a decent minimum standard of pay. Sanderson asserts that when employers break the law, they not only harm their staff but also undermine fair competition between businesses. Sanderson believes that regular naming rounds serve as a crucial tool in raising awareness of underpayment and safeguarding the rights of minimum wage workers.

The government has made it clear that anyone entitled to receive the minimum wage should be paid accordingly, and it is determined to take robust enforcement action against employers who fail to comply. Since 2015, the budget for minimum wage enforcement has doubled, and the government has ordered employers to repay over £100 million to 1 million workers.