TUC Assistant General Secretary Kay Carberry will call on the Government to pay the adult minimum wage rate to 18 year olds - it is currently only paid from the age 22 - and scrap the exemption from the minimum wage for apprentices.
Kay Carberry will say: ’The economic downturn is having a disproportionate impact on young people. Unemployment has now broken through the two million barrier, and workers under 30 are one of worst affected groups.
’We are seeing hundreds of thousands of graduates competing for non-graduate jobs - leading to increased unemployment among non-graduates - and exerting further downward pressure on pay.
’The downturn is also impacting on young people’s pensions. With so many companies closing final salary schemes to new entrants, young workers are suffering the consequences.
’We need to increase pay rates for those at bottom of the labour market - like the seven in ten 18 to 21 year old workers who are currently in low paid jobs, and who account for over a fifth of the low-paid workforce.
’As we seek to curb salary excess at top director level, we also need to boost pay at the bottom. This will speed up the process of economic recovery because increasing the disposable incomes of the low-paid is one of the best ways of increasing demand in the economy, and will create much more stability for the long-term.
’The minimum wage is one of great achievements of this Government - but as we celebrate its tenth anniversary, we can’t afford to relax our guard.
’The TUC wants the adult minimum wage rate to be paid from 18 - because if 18 year olds can vote, get married and join the army, then there is no reason why they shouldn’t be paid the same going rate for a job. Younger workers also often have similar commitments and outgoings to their older workmates.
’And the TUC is calling for the removal of the minimum wage exemption for apprentices - because far too many apprentices are being exploited by unscrupulous employers, and completion rates in some sectors remain poor.
’The TUC believes improvements in the minimum wage are both necessary and affordable. Necessary because a 20p an hour increase in the minimum wage would help low paid workers, while generating around £400 million of extra spending. And affordable because this would add just 0.06 per cent to the UK’s pay bill.
’The TUC also wants to see public procurement used to support living wages -we’ve seen in the Greater London Authority how this can drive real improvements, and this example needs to be repeated across the public sector.’
The TUC Young Members Conference begins today (Friday) at the Eastbourne Centre. For more information please contact Matt Dykes on 020 7467 1245.
The adult NMW is currently £5.73 an hour. Workers aged 18-22 receive £4.77 and those aged 16 and 17 get £3.53.
Low pay sectors make up about a quarter of the economy. Sectors with a high incidence of low paid jobs include: retail, hotels, catering, bars, textile manufacturing, hairdressing, cleaning, security, agriculture and food processing.
£400 million figure: Source: TUC estimate - this figure assumes 1.25 million beneficiaries receiving an increase of 20p per hour x the UK average working week of 34 hours x 52 weeks per year minus 10 per cent savings.
