Workers Union Attack `Rumoured' Plans to Dodge Costs Of The National Minimum Wage by Some Companies

* Warning: RMT's Mick Cash

by Benson Agoha | Business

As the governments announced the new National Minimum Wage which took effect from October 1, 2015, minimum adult rate, per hour of work done, rose by 20 pence from £6.50 to £6.70. (Apprenticeship rates rose from £2.73 to £330 (a rise of 57 pence).

The new rates announced in March, effective October 1, 2015 were give as:

* the adult rate will increase by 20 pence to £6.70 per hour
* the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
* the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
* the apprentice rate will increase by 57 pence to £3.30 per hour
* the accommodation offset increases from the current £5.08 to £5.35

* National Minimum Wage
 increased by 20p from
October 1, 2015.

A recent survey by the Chartered Institute of Personnel and Development (CIPD) on the governments National Minimum Wage and National Living Wage concluded that, as far as compliance and enforcement were concerned, the had not collected any systematic evidence on compliance, although it suspected it to be quite high.

Where there appeared to be breaches at all, it was usually found to be the result of "misunderstandings, deficient procedures or ignorance on the part of businesses rather than deliberate attempts to short-change employers."

But the report said it identified three areas where `we are aware of evidence pointing to possible non-compliance: interns, apprentices and the social care sector'.

But even though the CIPD report said there are suggestions that Ministers are contemplating tough penalties for noncompliance, possibly including criminal offences, the transport workers union has threatened to expose and fight any attempt to shift the costs of the minimum wage over to the employees.

In a strongly worded statement, RMT said it had `strong rumours' that contracting and facilities companies in the transport sector may be looking at cutting staff numbers or their hours while expecting them to the same amount of work and threatened to fight such attempts.

RMT General Secretary, Mick Cash (top right) said: "“There are already strong rumours coming back to us that contracting and facilities companies in the transport sector may be looking at cutting staff numbers, or cutting hours and expecting staff to do the same amount of work, as they seek to protect their profit margins from the introduction of the marginal increase in the minimum wage for over-25’s next April."

“That would be an outrageous and cynical manoeuvre that would make a mockery of the Government’s claims that they are on the side of working people when in fact they are standing back and allowing employers to dodge the cost of the minimum wage by paying fewer staff to do more work in order to cushion their profit margins."

“RMT will expose and fight any attempt to shift the costs of the minimum wage off of the employer and onto the backs of our members.”

Read the full [ CIPD report ].

-----The National Living Wage ------

Meanwhile, the living wage, previously set independently as a rival pay to the minimum wage, was adopted by the government in 2015. Before the government's adoption, the NLW had the following features - set by the Living Wage Foundation:

* an hourly rate for every adult job done. It is set independently and updated annually
* It is calculated according to the basic cost of living in the country
* The current UK Living Wage is £8.25 an hour
* The current London Living Wage is £9.40 an hour
* Employers choose to pay the Living Wage on a voluntary basis
* The Living Wage enjoys cross party support, with public backing from the Prime Minister and the Leader of the Opposition
* Paying the Living Wage is good for business, good for the individual and good for society
* The Living Wage Employer Mark and Service Provider Recognition Scheme provide an ethical badge for responsible pay

In July 2015, Chancellor George Osborne announced a compulsory minimum wage premium for all adult staff of over 25 years of age. He referred to it as the ‘national living wage’.

The government's Living wage is futuristic and will be introduced in April 2016. It is designed to reach a target of £9 per adult hour of work by 2020, and different from that worked out independently by the Living Wage Foundation.

There will then be a choice for private companies either to use that set by the government or the rate independently calculated by LWF.

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