NORTH WEST WORKERS WAGES GUARANTEED AS NATIONAL MINIMUM WAGE REACHES ITS 10TH BIRTHDAY
Business Secretary Lord Mandelson today celebrated a decade of success for the National Minimum Wage and pledged tough government action to support workers’ pay rights.
Now standing at £5.73 for those aged 22 and over, the minimum wage is helping North West workers get a fair wage for a day’s work. Latest figures show that 132,000 people in the region stand to benefit from the October 2008 National Minimum wage increase from £5.52 to £5.73.
Business Secretary Lord Mandelson said:
“The minimum wage has been a huge success for 10 years and is there to help make sure that workers are treated fairly, whatever the economic climate.
“We are determined to protect the rights that everyone in the UK is entitled to – this is a basic matter of fairness and helps ensure a level playing field for business.
“Before it was introduced, there was no limit on how little employees could be paid and I am sure that no-one could now imagine a return to those times.
“Our new penalties mean that anyone caught underpaying their employees faces an automatic penalty – no-one can ignore their responsibilities.”
The adult rate of the minimum wage has risen by 59% since its introduction in April 1999 – from £3.60 to the current rate of £5.73. Around one million people benefit each time the rate rises.
Automatic penalties for employers who underpay come into force on 6th April, ensuring that anyone caught flouting the law faces a stiff penalty.
The most serious cases of non-compliance will be able to go to trial in a Crown Court, which will have the power to impose an unlimited penalty.
Sarah Whittaker, 30, from Manchester was working as an usher at the Palace Theatre when the National Minimum Wage was introduced, and says it made a huge difference to her life.
Sarah says, “I was a student at the time at Salford University and I was working front of house at the Palace because I was interested in theatre and because the extra money came in handy.”
“I was working backstage and ushering because I enjoyed it, but I never really considered how badly paid it was until the National Minimum Wage came in. Suddenly I was earning a third more money for doing the same job and it made a real difference to my life and I realised how little money I had been on before.
Earning the extra money meant that Sarah could afford to stay on at the theatre where she moved up to work in Box Office and Group Sales before eventually becoming Assistant Manager.
Today Sarah works for Unite, but says that the training she had in the theatre job was very valuable to her career. She adds, “I think the National Minimum Wage is a very good thing – it has stopped people in low paid jobs from being exploited and has had a really positive effect on people’s lives.”
TUC General Secretary Brendan Barber said:
“The minimum wage has helped raise the living standards of thousands of families across the UK since its introduction in 1999.
“It has been an integral part of making the UK a fairer society and is an important part of protecting some of Britain’s most vulnerable citizens. We must continue to work together to develop the minimum wage, which has a vital part to play in shaping the economy of the future.
“We welcome the introduction of the new penalties introduced today, which will help to ensure that there is no hiding place for rogue employers underpaying their staff. We are absolutely determined to ensure that every worker can get what they are due.”
Today also sees new annual leave rules come into force, raising the statutory entitlement for all UK workers from 24 days to 28 days a year.
A phased approach to extending annual leave rights means businesses have been preparing for today’s change since 2007.