1. Implementing the National Living Wage A Trade Union Perspective
Gill Archer
UNISON

2. Which Living Wage? UNISON is a longstanding advocate of a living wage
A person should be paid enough to live decently
Welcome Government’s National Living Wage
But it doesn’t ensure lowest paid can afford a decent standard of living
We continue to campaign for the Living Wage Foundation rate

3. Living Wage & Local Government - 1
Local Government - the public sector’s poor relation
28% LG employees earn below real Living Wage
62% earn below £21,000 pa
Two thirds of councils pay the real Living Wage
But local implementation is not straightforward
Local ad hoc agreements impinge on national collective bargaining

4. Living Wage & Local Government - 2
Living Wage most commonly introduced as a supplement
But National Living Wage projections building pressure for changes to local pay structures
Implementation costs will vary according to workforce composition
Employer responses are mixed on changes to pay & grading structures

5. Pay & Grading Structures - 1
Absorb National Living Wage increases & make no changes to pay of other staff or to local pay & grading structure
Pass on a proportion of National Living Wage increase to employees in the pay range immediately above the National Living Wage pay rate, by percentage or flat rate amount

6. Pay & Grading Structures - 2
Pay labour market supplements to specific roles in the pay range immediately above the National Living Wage pay rates where labour market data shows their existing base pay will be uncompetitive
Eliminate or narrow differential compression by redesigning jobs of employees paid the National Living Wage so demands of these jobs in JE terms equate to the demands & pay of the originally higher graded jobs

7. Pay & Grading Structures - 3
Maintain differentials or reduce compression of differentials in respect of posts in grades which will be particularly impacted by National Living Wage implementation
And any proposal to be introduced must be equality impact assessed

8. NJC Pay Spine Reform - 1
Councils are expecting the NJC to resolve pressure at the bottom of the pay spine
pay settlement higher increases for scp 6-17 to build headroom for further NLW increases
Current NLW projections are £9.35ph in 2020
1% increases in 2019 & 2020 would still see scp6-16 fall below NLW

9. NJC Pay Spine Reform - 2
But pressure on NJC pay spine not just at the bottom
Mid point & top of spine compare badly with the rest of the public sector
Nearly two thirds of councils have expanded their pay spine locally & in different ways
Whole NJC pay spine needs reforming

10. NJC Pay Spine Reform - 3 Restructured NJC pay spine should:
Accommodate National Living Wage projections
Maintain pay differentials
Reward organisational experience
Reflect all jobs within scope of NJC
Encompass restructuring, devolution, changing jobs
Remain compliant with Equality Act and Single Status
Be funded separately from future pay offers

11. Implementing the National Living Wage A Trade Union Perspective
Gill Archer
UNISON