The new National Living Wage may help lift food workers out of poverty, but some companies are trying to claw back the increase, while others may struggle to meet the new payroll
The National Living wage of £7.20 per hour for all employees aged over 25 came into force on 1 April 2016, and was soon followed by reports that food businesses were cutting pay and benefits in other ways, to claw back wage increases.
Food Manufacture reported that two food companies, Two Sisters and Samworth Brothers, had become embroiled in rows with unions over proposed changes. According to the Bakers, Food and Allied Workers Union, Two Sisters told staff it planned to cut Sunday and Bank Holiday pay, overtime, and time off in lieu for working unsociable hours, with Samworth making similar threats. Both companies deny the claims.
Meanwhile the insolvency firm Begbies Traynor has warned that many small and medium-sized food companies operate on such tight margins that they will struggle to meet the new pay level. In January, Horticulture Week reported that horticulture enterprises, in particular, would be hard hit by the need to pay the National Living Wage.
Small food enterprises find themselves caught in a pincer, with pressure to pay employees a decent wage on one hand, and pressure from large customers to supply at rock-bottom prices on the other.
Read more about Sustain's campaign work for a fairer food system here.
Published Thursday 21 April 2016
Sustain: Sustain The alliance for better food and farming advocates food and agriculture policies and practices that enhance the health and welfare of people and animals, improve the working and living environment, enrich society and culture and promote equity.
