Implementing the National Living Wage A Trade Union Perspective Gill Archer UNISON

Which Living Wage? UNISON is a longstanding advocate of a living wage A person should be paid enough to live decently Welcome Government’s National Living Wage But it doesn’t ensure lowest paid can afford a decent standard of living We continue to campaign for the Living Wage Foundation rate

Living Wage & Local Government - 1 Local Government - the public sector’s poor relation 28% LG employees earn below real Living Wage 62% earn below £21,000 pa Two thirds of councils pay the real Living Wage But local implementation is not straightforward Local ad hoc agreements impinge on national collective bargaining

Living Wage & Local Government - 2 Living Wage most commonly introduced as a supplement But National Living Wage projections building pressure for changes to local pay structures Implementation costs will vary according to workforce composition Employer responses are mixed on changes to pay & grading structures

Pay & Grading Structures - 1 Absorb National Living Wage increases & make no changes to pay of other staff or to local pay & grading structure Pass on a proportion of National Living Wage increase to employees in the pay range immediately above the National Living Wage pay rate, by percentage or flat rate amount

Pay & Grading Structures - 2 Pay labour market supplements to specific roles in the pay range immediately above the National Living Wage pay rates where labour market data shows their existing base pay will be uncompetitive Eliminate or narrow differential compression by redesigning jobs of employees paid the National Living Wage so demands of these jobs in JE terms equate to the demands & pay of the originally higher graded jobs

Pay & Grading Structures - 3 Maintain differentials or reduce compression of differentials in respect of posts in grades which will be particularly impacted by National Living Wage implementation And any proposal to be introduced must be equality impact assessed

NJC Pay Spine Reform - 1 Councils are expecting the NJC to resolve pressure at the bottom of the pay spine 2016-18 pay settlement higher increases for scp 6-17 to build headroom for further NLW increases Current NLW projections are £9.35ph in 2020 1% increases in 2019 & 2020 would still see scp6-16 fall below NLW

NJC Pay Spine Reform - 2 But pressure on NJC pay spine not just at the bottom Mid point & top of spine compare badly with the rest of the public sector Nearly two thirds of councils have expanded their pay spine locally & in different ways Whole NJC pay spine needs reforming

NJC Pay Spine Reform - 3 Restructured NJC pay spine should: Accommodate National Living Wage projections Maintain pay differentials Reward organisational experience Reflect all jobs within scope of NJC Encompass restructuring, devolution, changing jobs Remain compliant with Equality Act and Single Status Be funded separately from future pay offers

Implementing the National Living Wage A Trade Union Perspective Gill Archer UNISON