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Tuesday, 9th February 2010

Council sets new minimum wage

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Published Date:
18 December 2008
Every employee at Preston Council will be paid at least £7.45 an hour under radical plans.
But stunned Tory councillors warned the plans, pushed through by jubilant Labour members and four Lib Dems, would mean job losses.

Preston will become one of only a handful of UK local authorities to adopt a "living wage" after it was voted in by 29-26 at yesterday's full council meeting.

A total of 101 out of 1,600 employees will get a pay rise and the council will urge contractors to also pay workers that amount.

But several Tory and some Lib Dem members said it had come at the "wrong time" and could lead to "two or three people" being made redundant to find the £48,800 needed to fund it next year.

Coun Matthew Brown (Lab), who proposed the motion, said: "It is nothing, it is about 40% of the chief executive's salary and for that we can help 101 low paid staff.

"It could bring thousands of people out of poverty."

Labour group leader John Collins said the council should be looking after all its employees in the same week as it is trying to sign up a Guild supremo on a wage of close to £80,000.

Coun James Hull (Lab) said the council would "demonstrate to other employers that we actually appreciate the people we employ at every level".

But Coun Bill Shannon, whose Lib Dem party had a free vote, said: "Let's be clear, what we are talking about here is making two or three people redundant to afford that £40,000."

Council leader Ken Hudson, who looked dismayed at the result, said the authority had just pumped £2.7m, with another £500,000 to come, into employee wages following a job evaluation.

All Preston Council employees earn more than the current minimum wage of £5.73 an hour for adults over 22.

>>City 'living wage' plan revived

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Lancashire Evening Post

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  • Last Updated: 18 December 2008 4:29 PM
  • Source: n/a
  • Location: Preston
 
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1

David C,

19/12/2008 10:32:46
does that mean all Councillors will be on £7.45, its a liveable amount so they dont need any more.
2

Ribbleton,

19/12/2008 10:36:33
David C. Members of council are paid a salary rather than hourly paid. No, its not performance related.
3

Jack Davenport,

Preston 19/12/2008 10:40:12
This was an excellent result for Preston COuncil. The move will help dozens of low paid workers at a time when when they extra money the most. The Tories and their Lib Dem apologists (those that voted against the living wage, that is) need to think outside the box if they think that this would mean job losses. As was pointed out, if every councillor (just as an example) took a reduction in allowance, it would pay for much poorer people. There are many ways the money could be found. The Tories clearly can't think outside the box and when it comes to an issue of low pay, clearly can't be trusted.

Congratulations to those Lib Dems that voted with us - it could not have been an easy decision. The Tories looked shell shocked. It was an excellent moment in the council and a victory for those that believe in social justice. Particular praise should go to Matthew Brown, who has pushed hardest for the policy.
4

Goodsocialist,

Utopia 19/12/2008 11:49:27
This policy is about encouraging other employers to do the same - not just about council workers. It could mean a living wage for thousands of people in Preston.

BTW - Preston Councillors allowances equate to £1.85 per hour before deductions.
5

eric the half bee,

Planet Earth 19/12/2008 12:10:36
Points 1 and 2

Yesterday’s decision was nothing to do with what Councillors receive. Councillors are not employees of the local authority. It was Council employers who benefit.

Councillors are not paid a salary or a wage. They are paid an allowance - the amount of which is recommended by an external body. I think it’s about £3,000 per year for a backbench Councillor.

Many councillors take time of from their full time jobs to attend council business and have to pay the allowance back to employers.

I read somewhere Councillors put in about 15 hours per week on average on council business. That equates to about £3.85 per hour (pre tax). Out of that allowance Councillors also have to fund telephone bills; transport costs and other stationery costs. Councillors also have to pay for literature distributed in wards. In terms of finance alone - the rewards for being a Councillor are very, very poor.
6

Matthew B,

19/12/2008 19:31:25
Firstly, the recommendation is a Living Wage of 7.08 for Preston. The 7.45 an hour figure is for the London Living Wage.

Point 4 is an excellent one. One of the main ideas behind this is influencing activity in the wider Preston economy. Preston City Council can ensure that prospective suppliers can pay employees the Living Wage - many of these employ Preston workers.

There will also be a sustained campaign with trade unions and others to encourage as many employers as possible to pay their workers the Preston Living Wage. In London, the policy is that successful their are regular protests outside major employers who do not pay Living Wage. The Tate Modern recently was one of them.

This is a big step forward for the city and at a cost of just 40,000 a year is money well spent.
7

River,

20/12/2008 01:33:20
People on low wages tend to spend their money straight away - boosting the local economy.

101 low paid workers with a bit of extra cash in their pockets can only be a good thing.

As is pointed out, this is a small fraction of the Chief Executives salary. If the Chief Executive took a week off, nobody would notice. If 101 frontline council workers took a week off, our services would grind to a halt.

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