[IER] 5 out of 6 low-paid workers cannot escape onto higher wage, study shows

Fri Oct 20 17:40:24 BST 2017

From: Institute of Employment Rights [mailto:sarah=ier.org.uk at mail141.atl121.mcsv.net] On Behalf Of Institute of Employment Rights
Sent: 20 October 2017 17:38
To: sarah at ier.org.uk
Subject: 5 out of 6 low-paid workers cannot escape onto higher wage, study shows

IER News Brief 20/10/17

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news brief

Friday 20th October 2017

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A new report from the Social Mobility Commission <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=77faa59a2a&e=71131c031b>  has found, once again, that the majority of people on low-pay are trapped there indefinitely.

While one in four people on low pay were stuck there consistently throughout the last decade, around half managed to temporarily increase their wage only to see it fall back down.

Alan Milburn, Chair of the Social Mobility Commission, recommended that the government work with employers to promote progression opportunities for the nation's workers, as well as an increase in productivity for businesses - a sorely needed reform, as the UK continues to struggle with low economic productivity that leaves it vulnerable to financial instability.

The Institute of Employment Rights agrees that providing opportunities for progression for low-paid workers is paramount for both closing social inequality gaps and strengthening the economy. However, we add that this can only be achieved through working with both trade unions and employers.

In our Manifesto for Labour Law <http://www.ier.org.uk/manifesto> , 25 proposals for reform drafted by 15 leading lawyers and academics, it is recommended that progression at work is supported by the reinstatement of a sectoral collective bargaining system across UK industry. Through this process, trade unions and employers' associations negotiate minimum labour standards to be applied across their sector, including agreements on pay, conditions, training, apprentices, and dispute resolution procedures.

This is a system used widely across the strongest economies in Europe, and it creates an incentive for employers to invest in their workforce, as well as to focus on improving the quality of their products and services to remain competitive, rather than attempting to compete via a race to the bottom on workers' rights, which ultimately harms the economy and deepens societal inequalities. 

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	Five out of six workers never escape low pay, study finds
The latest report from the Social Mobility Commission has found that only one in six low-paid workers escaped onto a higher wage over the last decade.
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