Glasgow City Region launches plan to tackle low pay

Backed by Living Wage Scotland, and supported by local leaders and key employers, one of the largest regions in the UK has set targets to grow both the number of accredited Living Wage employers, and employees being paid at least the real Living Wage. This work covers the Region's population of 1.85million people.

The Action Group of employers driving the campaign brings together all eight local councils, with NHS Boards, large businesses, charities, and smaller employers. Members of the Action Group will encourage and support other employers to pay the real Living Wage based on their own positive experiences.

The collective commitment by the eight local councils and influential employers in the Region to tackle low pay supports ambitions within the Region's Economic Strategy to drive inclusive growth and productivity - challenges specific to the Regional economy.

The real Living Wage is an independently calculated rate based on the cost of living and is paid voluntarily by employers. The rate is currently £12.60. It is calculated annually by the Resolution Foundation on an analysis of the wage that employees need to earn in order to afford the basket of goods required for a decent standard of living. This basket of goods includes housing, childcare, transport and heating costs.

Research has shown that Living Wage Accredited Employers have made savings on retention, recruitment and training new staff, and 94% of employers have reported having benefited from Living Wage accreditation. They also report increased morale and motivation resulting in increased productivity. For employees, the real Living Wage allows people the opportunity to provide for their families and plan for the future. Employees feel valued and appreciated, making them more motivated and loyal to their employer.

There are currently almost 1,300 accredited Living Wage Employers in Glasgow City Region. The Making Glasgow City Region a Living Wage Place Action Group are now working to increase that number to almost 2,000 over the next three years, boosting the number of workers in the Region earning at least the real Living Wage by at least 7,500.

Evidence shows that those paid below the Living Wage are more likely to be women and work part-time, and low pay is recognised to be more common in specific sectors including hospitality, retail, and manufacturing.

Glasgow City Council Leader and Chair of the Glasgow City Region Cabinet, Susan Aitken said: "Tackling low pay is crucial to creating a stronger, more inclusive economy and improving productivity across the City Region. That's why we want to invite more organisations to play their part in making Glasgow City Region a Living Wage Place by becoming accredited Living Wage employers. By doing so we can all reap the rewards of a more engaged and productive workforce, while making sure that everyone receives a fair wage for fair work." 

Living Wage Scotland, a programme delivered by the Poverty Alliance, champions the real Living Wage based on the cost of living and accredits employers. Other Living Wage Places currently underway in Scotland operate within the boundaries of a single local authority (in Aberdeen, Scottish Borders, Dundee, and Edinburgh). The Glasgow City Region Living Wage Place approach covers eight local councils, making it the largest recognised Living Wage Place approach in Scotland.

Rachel Morrison McCormick, Living Wage Projects Coordinator said: "We know that the Living Wage is good for businesses as well as workers, and good for society. We're delighted that an Action Group of employers are committed to making Glasgow City Region a Living Wage Place, to ensure many more workers can be protected from working poverty and moved on to a wage that meets their everyday needs. When more jobs are paid at least the real Living Wage, this can result in additional spending in the local economy too."

Peter Kelly, CEO of The Poverty Alliance said: "It's simply not right that people in working households are left to deal with the huge and damaging impacts that come from struggling on a low income. Employers play a vital role in protecting workers from poverty, and with a real Living Wage, they can help workers begin to thrive, rather than just survive. We'd like to congratulate the Glasgow City Region Living Wage Place Action Group for taking on the role as local Living Wage champions, working together to expand the real Living Wage across the Glasgow City Region. We hope that many more employers will join the Living Wage movement and become leaders on the road to a just labour market that works better for everyone."

Employer and member of the Glasgow City Region Living Wage Place Action Group, Alistair Dickson, Director of People and Technology at Quarriers said: "At Quarriers we believe our staff are our most valuable asset - they define Quarriers and make us who we are. Quarriers are committed to the real Living Wage as this directly benefits our staff and as a large provider of social care services within Glasgow, we fully support the Living Place campaign."

Employer and member of the Glasgow City Region Living Wage Place Action Group,Michael Cusack, Chief Sustainability Officer at ACS Clothing added: "At ACS, our commitment to the Living Wage is integral to our values of social responsibility and fairness. We believe that every employee deserves to earn a wage that meets the real cost of living, and this principle drives our mission to create sustainable, inclusive work environments. As a proud supporter of the Living Wage Places initiative, we are dedicated to working alongside our fellow local employers and communities to make the Living Wage the standard, fostering economic well-being and social mobility across Glasgow."

If you would like to find out more about becoming an Accredited Living Wage Employer, you can contact accreditation@povertyalliance.org or visit www.livingwagescotland.org