If this recommendation is accepted by the Government, the lowest-paid workers will suffer a real pay cut after inflation at a time when profits in some low-paid sectors have been soaring.
Commenting, Unite Regional Secretary Jimmy Kelly said: “The Low Pay Commission has missed an opportunity to use the National Minimum Wage as a strategic tool to start ending the scandal of low pay and ensuring that no-one earns below the Living Wage.
“Instead, at a time when some low-paid sectors – such as hospitality – are booming, with profits over 40 per cent above pre-crash levels, workers are being told that they are worth just 10 cent more. That is an insult to low-paid workers.
“Today’s recommendation makes almost no progress on bringing low-paid workers up to the Living Wage: instead, it may actually drive workers further into poverty, since they will suffer a real pay cut after inflation.
“Unite is urging the Government to reject the Commission’s recommendation and announce a real increase in the Minimum Wage – thus telling low-pay employers that poverty pay is not OK”, Jimmy Kelly concluded.
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