The Real Living Wage

1. Questions to the Minister for Social Justice – in the Senedd on 24 November 2021.

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Photo of John Griffiths John Griffiths Labour

(Translated)

3. What plans does the Welsh Government have to introduce the real living wage across Wales? OQ57240

Photo of Hannah Blythyn Hannah Blythyn Labour 2:01, 24 November 2021

We're using all of our influence to improve real living wage adoption, including leading by example ourselves as a real living wage employer, progressing our commitment to the real living wage in social care, and encouraging employers to actively explore the benefits of the real living wage.

Photo of John Griffiths John Griffiths Labour 2:02, 24 November 2021

Thank you for that, Minister, and I was pleased to see the First Minister's announcement last week of the new real living wage in Wales—that announcement on the twentieth anniversary of the establishment of the living wage movement. According to the Living Wage Foundation, there are now 360 accredited living wage employers in Wales. So, it is good to see progress, but of course what makes up fair employment is wider than the salary itself. So, I'm really concerned to hear from constituents of mine who are experiencing other aspects of unfair and poor treatment at work, such as fire and rehire tactics, including people who've worked for that employer in question for quite some time, for a number of years, loyally worked for that employer, and it seems there is very little they can do when they're victims of this sharp practice. So, I wonder, Minister, could you outline what action the Welsh Government can take, in promoting the real living wage, to also encourage and promote other aspects of fair work in Wales?

Photo of Hannah Blythyn Hannah Blythyn Labour 2:03, 24 November 2021

I thank John Griffiths for his follow-up question, and you're absolutely right there that the living wage is important and it's key, but it should always be seen as a baseline rather than a benchmark, and those other things you listed around terms and conditions, security of employment and progression are incredibly important as well. Using the threat of dismissal—we've heard of fire and rehire to tear up terms and conditions agreed in good faith—is an abuse of employer power, and we're clear that fire and rehire practices are not consistent whatsoever with our values here in the Welsh Government of fair work and social partnership. So, alongside the work we're doing to perhaps break down some of the barriers that some employers may find in terms of moving towards living wage adoption and living wage accreditation, it's also how we can use all those mechanisms in our fair work and social partnership approach to improve the well-being of people in work but also to demonstrate the benefits for the workforce of using all those levers we have through procurement and through grant funding as well.

Photo of Gareth Davies Gareth Davies Conservative 2:04, 24 November 2021

Good afternoon, Minister. Minister, my constituents would like to see the Welsh Government focusing on boosting the Welsh economy and attracting businesses who will pay more than the bare minimum. Lidl will now pay shop floor workers £10.10p per hour—well above the real living wage. Minister, average weekly earnings in Wales are well below other nations and regions of the UK. What is your Government doing to ensure that Wales no longer languishes at the bottom of the earnings table, and what are you doing to attract businesses who pay good quality wages to places like Rhyl in my consistency, one of the poorest parts of the UK?

Photo of Hannah Blythyn Hannah Blythyn Labour

Can I thank the Member for his question and his interest in this area? We know it's important to all of us, and actually paying the real living wage—. [Interruption.] That's the strangest heckle I've had in here to date. [Laughter.] Paying the real living wage, actually, isn't just about bringing benefits to the individual; it does bring benefits to those employers as well, because you're more likely to have a more sustainable workforce and to increase productivity. So, we're working through our economic contracts, through our social partnership work, working with representatives from the private sector and public sector to actually see how we can take that sectoral approach as well to create sustainability in places like Rhyl, and I know Rhyl very well myself, having grown up just down the road. In fact, my dad's first job was actually on the fair in Rhyl, when it was still there. [Laughter.] But, I think it's sectors like hospitality and retail that are key, so although we don't have that responsibility over employment rights here in Wales—they're still mainly reserved to the UK Government—but what can we do across a sector-wide approach to create fair work, not just in places like social care but in hospitality and retail as well.