Thursday, April 19, 2012

Labour is liking the living wage concept...

 

 

The living wage concept which has caught the attention of Labour, would likely not apply to employers across the board.



The living wage concept which has caught the attention of Labour, would likely not apply to employers across the board.

David Shearer is interested in the idea, which was introduced to some workplaces in London eight years ago.

Workers are paid the minimum they need to live out of poverty, rather than being paid a minimum wage.

Professor Jane Wills from London's Queen Mary University says there's never been any intention to target those who would go out of business, if they had to put their wages up.

"It's been very carefully targeted at employers that can pay. So the big banks, the finance houses, who often have their cleaning sub-contracted."

Jane Wills says the living wage figure is generated each year by an economist at City Hall and backed by independent research.

The idea was first introduced in eight years ago.

Professor Jane Wills from Queen Mary University says a living wage has addressed the issue of the tremendous turnover in the low paid job market.

"Of course if you put the wages up to a living wage level they're much less likely to move, one of the biggest obvious benefits is that labour turnover goes down."

Jane Wills says employers then save money by not having to interview, train and induct new staff.

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