An ambitious campaign by the Aberdeen Living Wage Action Group to grow the number of Accredited Living Wage employers who voluntarily pay the Real Living Wage—a salary that meets everyday needs, is reporting progress.
Launched in November 2020, the action group is a collaboration of employers and stakeholders from across the public, private and third sectors, on behalf of Community Planning Aberdeen.
There are now more than 80 accredited employers committed to voluntarily paying staff the real Living Wage in Aberdeen, including recently accredited Grampian Fasteners and bspoq.
The Action Group hope this activity will encourage more employers to join the movement.
However, around 10,000 workers in Aberdeen City still earn less than a real Living Wage and around 5,500 children in the city live in poverty.
While the economy of Aberdeen has prospered, there are large numbers of the population who have never benefited directly from this prosperity but instead continue to be negatively impacted by the high cost of living.
There are over 3,000 accredited Living Wage employers in Scotland who are committed to paying a real Living Wage.
The real Living Wage is the only UK wage rate calculated according to the costs of living.
It is currently £10.90 and is significantly higher than the government minimum for over 23s which at present stands at £10.42 per hour (from 1 April 2023).
Since 2011 the Living Wage movement has delivered a pay rise to over 60,000 people in Scotland and put over £370 million extra into the pockets of low paid Scottish workers.
Research from the Smith Institute found that if 25% of low earners had their pay raised to the real Living Wage, this could deliver a £3m boost to Aberdeen’s local economy through increased consumer spending.
Andrew Alleway, Chair of the Aberdeen City Living Wage Action Group and managing director of Tidy Green Clean, comments: "Aberdeen's ambition to become a Living Wage City is an essential initiative for the overall economic wellbeing of our region.
"When people are paid well, with fair contracts, and schedules that they know in advance, people are more productive and able to live better quality lives.
They're able to plan and provide for their families, which is what everyone wants to do. Yet the statistics are stark and we need to encourage all business owners to take this step, to make a real difference to boost the social and economic life of Aberdeen and beyond."
Gary Henderson, managing director of Grampian Fasteners, says; “We just feel that paying the real Living Wage is the right thing to do.
A team that has to worry less about money is a happier team.
These figures are announced each year by the Living Wage Foundation. The rates are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK.
We also hope it’ll encourage other companies to do the same.”
Kylie Moles, Head of Marketing, bspoq, says: “Our culture, and the welfare of our staff is really important to us at bspoq.
Accredited Living Wage employers in Scotland span private, public and third sectors. SMEs make up 75% of the total number of employers and more than half of Scotland's local councils are accredited. Find out more at www.scottishlivingwage.org/accredited.
When people are paid well, with fair contracts, and schedules that they know in advance, people are more productive and able to live better quality lives.
Christine McCaig, Living Wage Project Co-ordinator, adds: “We are delighted to support the Aberdeen City Living Wage Action Group in their ambition.
The Living Wage Places scheme provides an opportunity for employers and stakeholders to work collaboratively towards ending in-work poverty.
We hope to see many more employers joining over 80 Living Wage employers currently accredited in Aberdeen city, helping to ensure people earn what they need to live on.”
What about the UK government’s national living wage?
In July 2015 the Chancellor of the Exchequer announced that the UK Government would introduce a compulsory ‘national living wage’.
It was introduced in April 2016, originally applying for all workers over the age of 25, and, as of April 2021, is currently £10.42 (from 1 April 2023) an hour and applies for workers over the age of 23.
The rate is different to the Living Wage rates calculated by the Living Wage Foundation.
The government rate is based on median earnings while the Living Wage Foundation rates are calculated according to the cost of living in London and the UK.
The real Living Wage is the only rate calculated according to what people need to make ends meet.
It provides a voluntary benchmark for employers that choose to ensure their staff earn a wage that meets the costs and pressures they face in their everyday lives.
The UK Living Wage is currently £10.90 per hour, with a separate London Living Wage rate for the capital of £11.95 per hour.
These figures are announced each year by the Living Wage Foundation.
The rates are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK.
The Living Wage Foundation is the organisation at the heart of the UK movement of businesses, organisations and individuals who campaign for the simple idea that a hard day’s work deserves a fair day’s pay.
Living Wage Scotland was established in April 2014 by the Poverty Alliance with the aim of increasing the number of employers in Scotland who are recognised for paying their staff the real Living Wage. A partnership with the Living Wage Foundation, it is funded by the Scottish Government.
Accredited Living Wage employers in Scotland span private, public and third sectors.
SMEs make up 75% of the total number of employers and more than half of Scotland’s local councils are accredited.
Find out more at www.scottishlivingwage.org/accredited.
