Business West, the organisation that runs Bristol Chamber of Commerce, and the TUC have signed a joint declaration urging employers to pay their staff the Living Wage.
The agreement was signed yesterday on board ss Great Britain by TUC general secretary Frances O’Grady and Phil Smith, managing director of Business West, which also runs the Bristol Initiative.
The declaration urges employers to pay their staff at least £7.45 an hour as well as pledging that the two organisations will work together to help advise and support businesses that wish to adopt the Living Wage.
The minimum wage for adults aged over 21 rose to £6.31 an hour at the start of last month, with Business Secretary Vince Cable saying the change was needed to ensure the benefits of the recent glimpses of economic growth were “shared fairly across the board”.
However, Labour leader Ed Miliband has begun to focus on the cost of living crisis in the UK, saying economic growth has not been reflected in most pay packets. His comments, made amid anger over spiraling household energy bills, have strengthened the case for the Living Wage
Mr Smith backed that view, saying his organisation would do what it could to encourage its members to raise wage levels.
“Bristol has a reputation as a city with good employers, good companies and with a good workforce, and we think the Living Wage is part of that,” he said.
“There’s a squeeze on wages at the moment, and although the economy is picking up, it’s not yet reflected in people’s pockets so anything we can do to encourage our members to think about what they pay their workforce has to be good.”
South West TUC secretary Nigel Costley added: “We’ve had a long-standing, constructive relationship with Business West and we’re pleased to be joining forces to support the idea of the Living Wage.”
Bristol’s mayor George Ferguson pledged in the first full council meeting after his election a year ago to work towards introducing the Living Wage for council staff and contractors by the end of his first term of office in late 2016.
Research by the TUC published in September claimed that wages in the South West have fallen by 5% since 2007, with men losing £32.28 a week, and women losing £19.96.
The average hourly pay rate in 2007 in the region, restated in 2012 prices, was £11.32. That has now fallen to £10.67. The figure drops from £13.07 to £11.98 for men, and from £9.90 to £9.67 for women.
Pictured, from left: Business West's Phil Smith with Nigel Costley, South West TUC secretary, and TUC general secretary Frances O'Grady