North Ayrshire Council becomes accredited Living Wage Employer

The council is one of a number of local authorities from across Scotland to be officially accredited by the Scottish Living Wage Accreditation Initiative.

Although the council has paid the Living Wage since 2011, the accreditation confirms the authority’s commitment to supporting its staff. It also ensures that all council suppliers will be encouraged to pay their staff the Living Wage, meaning that more than 500 private sector workers could benefit financially.

The announcement was made to coincide with the start of Living Wage Week, which runs until Saturday, November 5.

Leader of the North Ayrshire council Joe Cullinane is now encouraging suppliers and businesses to follow the authority’s lead – and this week issued a letter to some of North Ayrshire’s largest firms, asking them to support the initiative.

He said: “This is a clear statement that the council is committed to working with others to tackle low income.

“We have made it clear that our number one priority is to tackle inequality. Earning the Living Wage can make a huge difference to the lives of those who are struggling to make ends meet.

“We are leading by example and that’s why we – as the largest single employer in North Ayrshire – are proud to show support for our lowest-paid workers.

“One of the most important reasons we think employers should become accredited is so they can become part of the Living Wage community and make the Living Wage the norm rather than the exception.

“We cannot eliminate inequality and poverty on our own but, if we play our part and encourage others to pay a fair and reasonable wage, we can begin to make a real change.”

The Living Wage is an independently calculated figure, which is updated annually to reflect the basic cost of living in the UK.

It is currently set at £8.25 an hour, although North Ayrshire council pays the slightly higher rate of £8.33 an hour, in line with the Scottish Living Wage for Local Government. This is significantly greater than the National Minimum Wage of £6.70 an hour and, based on a 40-hour week, more than over £2,000 a year more than the UK government’s National Living Wage.

According to the Living Wage Foundation, independent research on employers who have introduced the Living Wage has shown:

Increases in staff employee productivity.

Greater staff retention and reduced sickness absence.

Improved levels of morale, motivation and commitment.

North Ayrshire council believes that the Living Wage gives employees the opportunity to provide for themselves and their families, hopefully taking them out of in-work poverty – the UK has one of the highest proportions of employees in low-paid work among advanced economies.

Being accredited as Living Wage Employer also reflects the core values of the council and makes a positive contribution to society. Not only is paying employees a wage that supports a decent standard of living a responsible thing to do, but there are also clear business, societal and economic benefits in doing so.

Peter Kelly, director of The Poverty Alliance, said: “Local authorities play a vital role by setting an example for employers in their area. By becoming accredited, North Ayrshire council has ensured that all of its employees will always get paid at least the Living Wage.

“With more than half of children in poverty in Scotland living in a household where someone works, paying a real Living Wage that reflects the cost of living has never been more important.

“I would like to congratulate North Ayrshire council on their accreditation and their commitment to tackling in-work poverty, and hope that other employers in the area will follow suit and join the growing number of Scottish employers recognised for paying a real Living Wage.”

Louise McDaid, branch secretary of Unison North Ayrshire, which represents more than 2,000 council employees, praised the move.

She said: “North Ayrshire Unison welcomes North Ayrshire council’s commitment to paying our members the Living Wage.

“It is good for workers, who benefit from higher pay, improved health and job motivation.

“It is also good for employers, because it reduces turnover, improves productivity and attracts better staff through reputational gain, not to mention the wider community gains through cash going into the local economy, lower benefit costs and less stress on the NHS.”