Impactt Ltd » minimum-wage

Newsnight: Immigrant Workers Exploited

Selene Gittings — Fri, 31 Jul 2009 14:52:48 +0000

Last night Newsnight broadcast an investigation into the exploitation of immigrant labour in London hotels. Newsnight found that workers were being paid according to the number of rooms cleaned not hours worked. This meant that workers were regularly being paid below the £5.73 per hour minimum adult wage. Example payslips which the BBC uncovered include one worker who was underpaid by £113 over a two week period, and another who was underpaid by £69. Workers have no official support system to turn to and eventually took their concerns to London Citizens, a community group which campaigns for living wages and works to improve pay and conditions for low paid workers in the capital.

These stories are not new and whilst nationalities and specific cases of exploitation change, the hotel industry is yet another sector where migrant workers are often isolated, unaware of their rights and lack English language skills. This can make them easy victims for exploitation. The Newsnight story follows a flurry of reports this year relating to the mistreatment of migrant workers in the UK garment, meat and fruit industries.

Impactt have often found that labour standard issues tend to be more prevalent at sites using agency, temporary and migrant labour. These issues are complex and cannot be reduced to a matter of blame; sustainable improvement relies on cooperation from all involved. As a result, Impactt specialises in engaging with workers and acting as an avenue through which practicable improvements for workers can be developed with buy-in from both sites management and customers.

UK’s Minimum Wage rises today, 1st October 2008

Jane Blacklock — Tue, 30 Sep 2008 17:25:38 +0000

The minimum wage in the UK will rise today, 1st October, in the 10^th Anniversary year of the National Minimum Wage (NMW) legislation being passed.

Minimum wage rates for over 21s will rise from £5.52 to £5.73 per hour, whilst the minimum wage for 18 to 22 year olds increases from £4.60 to £4.77, and from £3.40 to £3.53 for those aged 16 and 17.

This latest change represents a total increase of 59% since 1998, compared to a 44% rise in average pay over the same period. The TUC has stated that more than one million workers will benefit from this rise.

Whilst Impactt applauds the commitment of the government to increase the minimum wage, research indicates that there is still confusion and lack of awareness amongst small businesses about NMW levels. In addition, workers in particular industries such as hospitality, care and domestic service are often being denied these minimum rates. A TUC report from December last year indicated that around 150,000 workers were not being paid the legal minimum. Recent reports of ‘scrooge’ employers also highlighted the widespread use of tips in the restaurant trade to ‘top up’ workers’ wages to NMW levels.

The minimum wage has undoubtedly benefitted a significant number of low-wage workers in its 10 years of existence. However, inadequate enforcement of the minimum wage requirements continues to thwart the realisation of the regulation’s full potential.

Tipping in the Service Industry – Progress!

Jane Blacklock — Thu, 31 Jul 2008 15:36:13 +0000

Today, on the 10^th Anniversary of minimum wage legislation in the UK, the government have announced their intention to reform the rules on the use of tips to ‘top-up’ wages to minimum wage level.

We would like to congratulate the swift work of those who have campaigned on this issue, and have achieved a meaningful win for working conditions!