Council announces £7 minimum wage

tirano

Good way to spend our money ?

http://news.bbc.co.uk/1/hi/scotland/7931168.stm

antilles

Hmm...

Council leader Steven Purcell said the move would boost the wage packets of the lowest paid staff by more than £1,100 a year. He issued a challenge to other employers to do the same.

Easy for him to say when he's not spending his own money. I can just see all Glasgow businesses saying "Hey - why don't we give everyone a huge rise.. after all.. if Steve can do it.. so can we!!"

beingjdc

Merry-go-round, but probably worth it. The government would be topping most of these people's wages up with tax credits anyway, so the cost to the taxpayer isn't the full £1 an hour extra, and the low-paid are more likely to spend their pay in the local economy, so overall may well be good for the area - I bet it's only about 100-200 people at the council itself who are affected anyway, whereas if Glasgow Travelodge (I'm picking on them this week!) can take a few pennies out of their Chief Exec's £400k pay packet to up their cleaners' pay to £13,400 a year, the local economy could really benefit.

themanbearpig

Just after the government announces its plans to create new money, how convenient.

tirano

beingjdc wrote: »

Merry-go-round, but probably worth it. The government would be topping most of these people's wages up with tax credits anyway, so the cost to the taxpayer isn't the full £1 an hour extra, and the low-paid are more likely to spend their pay in the local economy, so overall may well be good for the area - I bet it's only about 100-200 people at the council itself who are affected anyway, whereas if Glasgow Travelodge (I'm picking on them this week!) can take a few pennies out of their Chief Exec's £400k pay packet to up their cleaners' pay to £13,400 a year, the local economy could really benefit.

The tax credits are paid by Central Government, wheras this move will impact on local Council Tax Payers.
Those in the Council earning higher wages will want to maintain their differentials, so the impact will be across the Council

treliac

beingjdc wrote: »

Merry-go-round, but probably worth it. The government would be topping most of these people's wages up with tax credits anyway, so the cost to the taxpayer isn't the full £1 an hour extra, and the low-paid are more likely to spend their pay in the local economy, so overall may well be good for the area - I bet it's only about 100-200 people at the council itself who are affected anyway, whereas if Glasgow Travelodge (I'm picking on them this week!) can take a few pennies out of their Chief Exec's £400k pay packet to up their cleaners' pay to £13,400 a year, the local economy could really benefit.

http://forums.moneysavingexpert.com/showpost.html?p=19522793&postcount=65

It's allegedly 80,000 people working for Glasgow council!

beingjdc

treliac wrote: »

http://forums.moneysavingexpert.com/showpost.html?p=19522793&postcount=65

It's allegedly 80,000 people working for Glasgow council!

That's not logically possible, I'm pretty sure that means in Glasgow, rather than for the Council!

beingjdc

tirano wrote: »

The tax credits are paid by Central Government, wheras this move will impact on local Council Tax Payers.
Those in the Council earning higher wages will want to maintain their differentials, so the impact will be across the Council

That's what they said about the minimum wage in general in 1997, but there wasn't huge wage inflation across the board. The trend of local government pay settlements over the last three or four years has been that the headline increase is fairly low, but the lowest couple of pay scales get a flat increase that works out as a bigger percentage.

PasturesNew

I don't see that it would make much difference to "the pot". So many people get a top up with Working Tax Credit and Child Tax Credit nowadays that they get more than £7/hour once they've had that top up.

So the minimum up to £7 is most likely to be benefitting single people who don't get those.

It'd be paid out of council tax, but the Govt's tax credits would reduce.

treliac

tirano wrote: »

The tax credits are paid by Central Government, wheras this move will impact on local Council Tax Payers.
Those in the Council earning higher wages will want to maintain their differentials, so the impact will be across the Council

Either way the public fund it all (as we do the bill for benefits). Doesn't make a case for not giving proper rewards to people providing essential services.

Can't see an argument around differentials. It's not like the private sector and lifting the lowest paid slightly isn't going to have the better paid jumping up and down.

treliac

beingjdc wrote: »

That's not logically possible, I'm pretty sure that means in Glasgow, rather than for the Council!

Yes, I've just re-read it. (double blush!)