I believe that the case for everyone to be paid at least a living wage is overwhelming. One of the first political tricks I learnt was that when you look at a proposition, consider the exact opposite and see if it makes sense. This would produce "people should be paid less than the living wage" which lacks fairness, social justice, economic understanding and is not likely to be popular.
I don’t believe that it makes sense that the government enforces a minimum wage that is not considered enough to live on, which is why I believe the living wage is desperately needed.
The living wage currently stands at £7.45 for workers over 21 in the UK excluding London and £8.55 for London compared to the minimum wage of £6.19 for people over 21 which is being increased to £6.31 from October 2013. Whilst the absolute difference is relatively small the effect it can have on the lives of people is far greater.
One of the biggest problems facing us in Wales to today is in work poverty which is something the living wage would address and one of the Westminster government’s biggest problems is paying in work benefits which again paying a living wage would address. I believe that the government has a moral duty to ensure a decent standard of living for all
and a study by the Resolution Foundation shows the Treasury would save over £2 billion a year if all workers were paid at least the living wage
The following statement of opinion has been raised in the National Assembly by Mike Hedges and Mick Antoniw and supported by a Assembly members representing Labour, Plaid Cymru and the Liberal Democrats "Recognizes the principle of a fair day’s pay for a fair day’s work; Notes that current council pay rates force many low-paid council workers into claiming tax credits, free school meals, housing benefit and council tax benefit to support themselves and their families;
Believes that paying low-paid employees a living wage of £7.45ph would help to combat in-work poverty and promote sustainable standards of living;
Welcomes the decision taken by some Welsh local authorities to introduce a living wage and encourages all remaining local authorities to consider implementing a living wage for all low-paid employees and subcontracted workers"
I believe all local authorities in Wales should commit to paying the living wage, however if that happens in isolation all that will occur is the further privatisation of public services. It is thus important that as well as implementing the living wage that local authorities make it a criteria for anyone tendering or applying for a contract that they pay the living wage. This will need to be carefully controlled and monitored to ensure that the living wage is being implemented.
Labour’s Westminster Leader Ed Miliband has offered his support for the living wage, claiming that Labour would offer tax rewards to companies who began paying their workers the increased rate.
The Labour leader said in a Guardian interview "that companies could be offered lower business rates or tax relief on training programmes in return for boosting their staff's pay packets".
Ed Miliband also supported the idea of living wage zones, which would see certain industries or geographical areas institute the living wage where a significant proportion of companies supported the idea.
"Living wage zones would work for everyone – the people who get decent pay, the employers who get a more committed workforce and the government saves money on tax credits,"
The benefit for employers is given by the living wage foundation report that says "
A Living Wage Employer ensures that all employees are paid at least the Living Wage. This includes individuals who work on a regular basis at your premises for a subcontractor, such as cleaners or security staff".
Living Wage employers report improved morale, lower turn over of staff, reduced absenteeism, increased productivity and improved customer service. Between them, the employers committed to paying a Living Wage have lifted more than 45,000 families out of working poverty"
Our ambition for Wales must be to create a high wage and high skilled economy and becoming a living wage country would be one further step along that road. We cannot afford it, and it will cost jobs has been the argument used against all progressive change from the abolition of slavery to the minimum wage.
We won the battle over the minimum wage and the loss jobs that were predicted to occur did not materialise. It may have reduced sales of top of the range cars but it put money in people’s pockets and helped local economies. I believe that the economic and moral imperative is to set the challenge to make Wales a living wage country by 2020.
I believe that would make Wales a fairer country and this is a policy that all of us living in Wales could be proud. Local Government has the opportunity to take a lead in this area and help make Wales a living wage country.
The changes local Government desperately need also includes the setting of national salaries for chief officers in the same way as they are set for Councillors, cabinet members and council leaders and this would end the continual upward movement of senior local government officer salaries via the internal salary reviews that take place.
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