The move will see workers paid at least £10.85 an hour in London and £9.50 in the rest of the country. The union continues to call for at least £10 per hour for workers of all ages across the UK.
The Living Wage Foundation announced new rates for the ‘real’ Living Wage last November and gives accredited businesses six months to implement the increase.
Dave Gill – Usdaw National Officer said:
Usdaw has been in discussions with IKEA about them continuing to be a Living Wage employer and implementing the latest increase. So our members are pleased to hear today that the company has agreed to pay the new Living Wage from May. They remain one of a few retail employers who pay the real Living Wage.
While we welcomed the latest increase in Living Wage rates, Usdaw continues to campaign for a New Deal for Workers with a minimum wage of at least £10 per hour and an end to insecure employment. Living Wage employers like IKEA are leading the way, but we need the Government to go much further.
Usdaw’s New Deal for Workers campaign calls for a£10 minimum wage for all workers, a ban on zero-hour contracts and job security, with employment rights from day one. They also want better sick pay for all workers and a proper social security system because Universal Credit does not provide the safety net that it should.
The union, who last week gave evidence to the Low Pay Commission believe that the coronavirus pandemic has shown that traditionally low-paid jobs are key worker roles, essential to the functioning of the UK economy. But they are concerned that many low paid retail workers cannot afford to put food on the table or heat their homes. Usdaw want the Government to increase National Minimum Wage rates to tackle in-work poverty.
The union is also campaigning for better pay for young workers. Currently those aged under 22 are paid less money for doing the same job and the same hours as workers aged 23 and over.
Paddy Lillis – Usdaw General Secretary said:
Usdaw is also extremely concerned about the pay gap. For many young workers, being denied the so-called National Living Wage pay rate reinforces the already desperate position that they are experiencing. Usdaw’s evidence clearly shows that lower pay rates and greater insecurity of employment for young workers is a significant factor in the country’s mental health crisis.
Usdaw has campaigned for years to abolish youth rates. We continue to campaign for a national minimum wage of at least £10 per hour for all ages and call on the Government to tackle insecure employment contracts.