National Living Wage Conundrum

makeyourdaddyproud

We all know it will rise in April next year to £7.20 ph.

What perplexes me is what will those already on £7.20 at this point in a low paying industry, possible in a supervisory context which affords that rate currently.

Will they 1) receive a commensurate rise or, 2) stay on the same rate (which means underlings paid the same for less responsibility), or will there be union activity / unrest to get a deal on 1).

I for one would be miffed at having my preferential rate afforded by time and responsibility demeaned by the new starter rate.

Any thoughts?

kathrynha

Ever since minimum wage came in an increasing number of jobs have become minimum wage jobs as minimum wage rises have caught them up.
I'm guessing some companies will raise all wages, where as others won't bother and people will just get on with their jobs like has always happened

CKhalvashi

kathrynha wrote: »

Ever since minimum wage came in an increasing number of jobs have become minimum wage jobs as minimum wage rises have caught them up.
I'm guessing some companies will raise all wages, where as others won't bother and people will just get on with their jobs like has always happened

Our increase is 2% this year, with a contractual minimum rise of the NMW rise.

The exception is those that were TUPE transferred on higher money, where it's agreed they'll stay on the same level until our wages have caught up with theirs (which now only affects 8% of the office team, it was once a lot higher)

I have no idea what other employers are doing.

makeyourdaddyproud

CKhalvashi wrote: »

Our increase is 2% this year, with a contractual minimum rise of the NMW rise.

The exception is those that were TUPE transferred on higher money, where it's agreed they'll stay on the same level until our wages have caught up with theirs (which now only affects 8% of the office team, it was once a lot higher)

I have no idea what other employers are doing.

I have experience of TUPE transfer through my wife who was, for the same role of the TUPEr, on 1.5x the money. They chose not to elevate the low paid member to her money but offer her redundancy instead. I wish there was a mechanism to object to a TUPE deal without being made redundant on this basis only, i.e. ask to make the rate currently enjoyed the basal rate.

CKhalvashi

makeyourdaddyproud wrote: »

I have experience of TUPE transfer through my wife who was, for the same role of the TUPEr, on 1.5x the money. They chose not to elevate the low paid member to her money but offer her redundancy instead. I wish there was a mechanism to object to a TUPE deal without being made redundant on this basis only, i.e. ask to make the rate currently enjoyed the basal rate.

We would have faced an annual £200k increase in salary costs in doing this (if I understand what you mean), before employers NI and pension contributions.

There was absolutely no way we could afford to do that, as our team wasn't (and still isn't) particularly small.

scooby088

Afraid if you are already on the nlw rate i cant see many companies raising the rate any higher.

dawyldthing

I've been on a bit more in my job since I started and in April it would be the first pay rise in nearly 5 years. But apparently the team leader got only 50p more than the minimum wage, so wouldn't be on much more than im on. In all honesty though in many jobs like care and the like I can't see how they will pay team leaders much more when they don't make much on each hour as it is before Aprils raise comes in. It's like when the company I work for had agency in it actually was costing them money as the agency wants more than the company get paid by the council.

I think as one said above many will just keep going, but they will struggle to recruit higher up if there's not much difference in wage as what's the point in doing a more stressful job if you don't get paid more - I know I wouldn't do it

lovehackney

The retailer I work for is going to maintain differential pay rates, eg if a manager currently earns £7.20 and a shop assistant £6.50, then that is a 70p/hour difference so once the assistant gets the living wage of £7.20, manager will get £7.90.

Some employers might calculate it on a % basis.

I would be very surprised if many employers let managers and more junior people be paid the same. They might try it in the short term but longer term it will cause retention and recruitment issues.

HappyMJ

lovehackney wrote: »

The retailer I work for is going to maintain differential pay rates, eg if a manager currently earns £7.20 and a shop assistant £6.50, then that is a 70p/hour difference so once the assistant gets the living wage of £7.20, manager will get £7.90.

Some employers might calculate it on a % basis.

I would be very surprised if many employers let managers and more junior people be paid the same. They might try it in the short term but longer term it will cause retention and recruitment issues.

Well I certainly wouldn't stay as a manager and get the same money as the people that I manage.

takman

I can't believe a role that involves being a supervisor or manager gets paid only £7.20 an hour!. I'm surprised anyone would want the extra responsibility and stress when they are only getting an extra 50p - £1 more per hour.

makeyourdaddyproud

takman wrote: »

I can't believe a role that involves being a supervisor or manager gets paid only £7.20 an hour!. I'm surprised anyone would want the extra responsibility and stress when they are only getting an extra 50p - £1 more per hour.

Depends on the amount of extra responsibility, I suppose. Retail depots are the real culprits in that regard.