Chris Holland looks at some recent local developments around the National Living Wage which continues to generate political controversy

THE outgoing head of employers' body the CBI recently described the Government's Living Wage as "a gamble".

John Cridland told a national newspaper that plans to increase the wages of low paid staff by five per cent a year to £9 an hour by 2020 was a laudable objective but warned the wage increase could lead to the automation of certain jobs.

He said: “The national living wage of £9 an hour is a laudable objective. The increase to £7.20 next April looks OK, but you can’t guarantee what will happen in the next four years. Increasing wages by five per cent a year for four years will result in 25 per cent of people being on the national living wage.

“The national living wage is a gamble. If the government pushes up wages too fast and more quickly than business can accommodate, then business will take out people and replace them with machines.”

And yet the signs are that an increasing number of local companies are adopting a new approach to wage pay levels for those in traditionally low paid roles - most outstanding among them Bradford-based Morrisons. The supermarket recently reached a deal with shopworkers' union USDAW to make more than 90,000 store staff among the highest paid in the sector from next March.

The £40 million deal will see hourly pay for store staff rise to £8.20 an hour from a previous minimum of £6.83 for workers of all ages.

David Potts, chief executive, said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler. By paying a significantly higher hourly rate, we are recognising the contribution of our excellent staff, who are so important to the revival of Morrisons.”

Usdaw has recommended its Morrisons members to back the deal in a ballot this month.

Joanne McGuinness, Usdaw national officer, said: ““The new consolidated hourly rate is now the highest of the big four supermarkets, which is paid every hour not just when staff work at times that attract premium pay.

“It is a big step forward, shows that the company are prepared to invest in the staff to help grow the business and I hope that the deal is supported by our members in the ballot.”

The new owner of Ilkley Brewery has registered as a Living Wage Employer, and has increased workers' pay across the board.

The move is part of a pledge by Half Full Beer Company , which acquired the award-winning business in July , to improve conditions and standards and increase production capacity.

The Living Wage commitment will see everyone working at Ilkley Brewery, including permanent employees and third-party contractors; receive a minimum hourly wage of £7.85 - significantly higher than the national minimum wage of £6.50. The commitment will continue into 2016 with a rise to £8.25.

Luke Raven, co-director at Ilkley Brewery said: “We are proud to be raising our voice amongst a growing number of businesses across the UK who support their staff by paying the Living Wage.

“Our beer is made by people, by hand, and we rely on their passion and commitment. By recognising their hard work in this way, we hope to be able to foster a greater sense of shared ownership in the long term project here at Ilkley Brewery.”

Rhys Moore, Living Wage Foundation director, said: “We are delighted to welcome Ilkley Brewery to the Living Wage movement as an accredited employer.

“The best employers are voluntarily signing up to pay the Living Wage now. The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay.

“We have accredited over 1,700 leading employers, including Ilkley Brewery, ranging from independent printers, hairdressers and breweries, to well-known companies such as Nationwide, Aviva and SSE. These businesses recognise that clinging to the national minimum wage is not good for business. Customers expect better than that. "

Ilkley Brewery has also committed to increasing its workforce by 60 per cent by the end of the year as part of its expansion plans. It has launched a training scheme to enable existing employees to expand their knowledge, qualifications and industry experience. The first employee to benefit is Adam Scroggins, who is progressing from a brewery operative to become assistant brewer.

Luke Raven added: “As well as our ongoing commitment to the local community and to our employees, which are the building blocks for solid business, we are looking to capitalise on the current interest and energy within the beer sector.

“We have already invested over £140,000 in the infrastructure at Ilkley Brewery since August this year, including taking on an additional storage facility and with additional expansion in the pipeline. I think this emphasises our commitment to grow Ilkley Brewery into one of the top independent breweries in the UK.”

Bradford label manufacturer Watermill Press was one of three firms shortlisted in the regional Yorkshire Living Wage Champion Awards.

These recognise Living Wage accredited employers that have implemented and promoted the Living Wage both internally and amongst their wider business networks.

The Living Wage Foundation offers a recognition mark for employers that commit to paying the Living Wage, an hourly rate calculated annually by the Centre For Research In Social Policy at Loughborough University.

Dale Deacon, Watermill Press’ managing director, said: “We believe everyone working full time should be able to earn a wage sufficient to live on. When everyone in a team feels appreciated and properly valued then commitment, productivity, quality and service levels rise across the whole organisation.

“Watermill have paid all staff at least the Living Wage for many years but we’re very pleased that over the past 12 months we’ve been able to assist a number of our key suppliers in achieving accreditation for their businesses too.”

Meanwhile, 85 of Bradford-based Yorkshire Water’s eligible workforce, including contracting staff , have received a pay increase totalling £120,000 since the company committed to pay a higher living wage.

Yorkshire Water is one of 114 businesses in the region that have signed up to the Living Wage Foundation fair payment pledge. It has been paying a Living Wage since December 2014 and was the second water company to sign up to the voluntary commitment.

Jonathan Turton, 34, a CCTV security operative, said: “I receive around £100 a month more in my pay packet since Yorkshire Water signed up to the Living Wage Foundation. This extra income does make a difference and I know that some security staff receive even more than £100 extra if they work longer hours which tends to be the nature of the security sector.”

The Living Wage Foundation’s purpose is to encourage businesses to pay low income staff more than the minimum wage. Its £8.25 per hour rate is significantly higher than the Government’s national minimum wage that currently stands at £6.70 per hour.

To bridge this gap, the minimum wage will be increased to £7.20 next April for over-25s as part of a new National Living Wage the Government is introducing.

Richard Flint, Yorkshire Water chief executive, said: “We are proud to be one of the region’s biggest employers and with that position comes the responsibility that our colleagues receive a fair wage for the important work they do.

" As such, we are voluntarily signed up to the Living Wage Foundation agreement to pay a minimum of £8.25 for colleagues in roles within our security, catering, cleaning, and ground maintenance teams.”

Yorkshire Water will also hire 160 apprentices over the next five years offering a starting salary of £13,000 which is above the national average.