Living wage boost can pay dividends

EMPLOYERS have highlighted the business benefits of paying workers more than the national minimum wage - and have called on more firms to end low pay.

The appeal was made at a Living Wage seminar hosted by the Living Wage Foundation and Greater Manchester Chamber of Commerce, which represents many regional businesses and is itself a living-wage employer.

Speakers said staff retention, motivation and productivity improve when workers receive the living wage, currently £7.85 an hour outside London, compared with the Government's legal minimum wage of £6.50.

Around 600,000 workers in the region earn less than the living wage, and UK tax payers would save around £11billion a year in state benefits designed for the low-paid if private businesses started paying at that level.

Speakers included Saddleworth businessman Mick Cribb, chairman of Altrincham-based IT firm Quantiv. He said: "We employ 40 staff and have avoided the divide found in some businesses, such as legal firms, where lawyers earn high pay but administration staff are low-paid.

"Value and respect to all staff leads to gratitude, commitment and long-term success. We have a queue of graduates and overseas staff who would be willing to work for the minimum wage. But we know of other companies who have problems with the quality of work by low-paid staff and spend thousands of pounds a year chasing subcontractor companies about problems."

Sara Saunby, director of the Salut wine shop in Manchester, said: "My business is a hybrid of two industries notorious for low pay - retail and bars. I read about low-paid people trying to hold down three jobs just to survive. Our 12 employees are properly paid. We retain staff who look after customers and we get new customers from our good reputation.

"It's unethical to pay staff less than the living wage if you can afford more."