Living Wage Foundation Responds to new Industrial Strategy
Katherine Chapman, Director of the Living Wage Foundation, said:
"The UK's productivity puzzle is a major challenge for us all, and the key to kick-starting sustained wage growth. As this strategy makes clear, investment in technology and infrastructure is important, but we also need to invest in people and to focus on boosting productivity and innovation in low wage sectors.
"In low wage sectors like retail, the Living Wage has become an increasingly important measure to boost productivity. Forward thinking retailers such as Ikea, Oliver Bonas and Brewdog have seen the benefits of paying their workers a fair day's pay for a hard day's work. Three quarters of Living Wage accredited employers have reported increased motivation and retention of staff as a result of accreditation. Almost 60% said paying the Living Wage had improved relations between staff and managers. In many cases, Living Wage employers have further boosted productivity by investing in staff skills and training, creating a virtuous circle of greater staff investment and productivity.
"Despite these successes, one in five people in the UK is still stuck in in-work poverty, including over a quarter of female employees who earn less than the real Living Wage. Improving the pay of these workers by adding to the network of 3,700 employers paying a real Living Wage will be vital if the UK is to break free from its productivity slump."