Dailycsr.com – 26 April 2016 – George Osborne, a Chancellor of the Exchequer, rolled up his sleeves to raise the “National Living Wage” on the 1st of April 2016. The calculation for NLW is done by “academics” determining the pay grade, which would provide the workers with “sufficient for a basic standard of living”. It is one of “big ideas” which should be immediately most beneficial to “1.3m workers” over twenty five years old as it would boost many poorly-paid employee(s’) salary in the United Kingdom.
However, some small business employers are of the opinion that Osborne’s idea of increasing NLW will impact negatively “on their profit”. Initially, the NLW will be started at “£7.20” per hour; although there are plans of increasing the margin to “more than £9 an hour” by the year of 2020. In fact, this wage will cover full-time as well as part-time workers, while some London based employers “have pledged to pay even more than the NLW”. Likewise, the current rate of NLW in London is “£8.25 an hour and £9.40 an hour”.
Some of the FTSE 100 Companies, like “Aviva, Barclays and Legal & General” among others, have also agreed to pay the sum. According to Osborne, an ambition of equalling NLW to sixty percent of “median earnings” by the year of 2020 has resulted in the aim of reaching over “£9” hourly rate for NLW by the year of 2020.
However, the “Office for Budget Responsibility” notified that as an immediate effect to the reduction in total work hours put in by “four million a week”, as many as sixty thousand jobs will be “lost”. Supermarket, hospitality and fashion industry are in first in the line to raise their wages while the penalties of not paying the NLW will also be “doubled” simultaneously.
Interestingly, in California, the rates for “minimum wage” were also raised to “$15 an hour for all workers”. On the other hand, Andrew Cuomo, the Governor of New York came up with “similar deal”. As per Ethicalperformance:
“The estimated 5.6 million California workers affected by the increase will see their annual pay rise an average of 24 percent according to the Center for Labor Research and Education at the University of California, Berkeley”.
The increment in NLW in the U.K. and the minimum wage in the U.S. symbolises the need to preserve the workers’ rights and dignity all over the world.
References:
http://www.ethicalperformance.com/
However, some small business employers are of the opinion that Osborne’s idea of increasing NLW will impact negatively “on their profit”. Initially, the NLW will be started at “£7.20” per hour; although there are plans of increasing the margin to “more than £9 an hour” by the year of 2020. In fact, this wage will cover full-time as well as part-time workers, while some London based employers “have pledged to pay even more than the NLW”. Likewise, the current rate of NLW in London is “£8.25 an hour and £9.40 an hour”.
Some of the FTSE 100 Companies, like “Aviva, Barclays and Legal & General” among others, have also agreed to pay the sum. According to Osborne, an ambition of equalling NLW to sixty percent of “median earnings” by the year of 2020 has resulted in the aim of reaching over “£9” hourly rate for NLW by the year of 2020.
However, the “Office for Budget Responsibility” notified that as an immediate effect to the reduction in total work hours put in by “four million a week”, as many as sixty thousand jobs will be “lost”. Supermarket, hospitality and fashion industry are in first in the line to raise their wages while the penalties of not paying the NLW will also be “doubled” simultaneously.
Interestingly, in California, the rates for “minimum wage” were also raised to “$15 an hour for all workers”. On the other hand, Andrew Cuomo, the Governor of New York came up with “similar deal”. As per Ethicalperformance:
“The estimated 5.6 million California workers affected by the increase will see their annual pay rise an average of 24 percent according to the Center for Labor Research and Education at the University of California, Berkeley”.
The increment in NLW in the U.K. and the minimum wage in the U.S. symbolises the need to preserve the workers’ rights and dignity all over the world.
References:
http://www.ethicalperformance.com/