In Cornwall, there is an increasing emphasis on employers adopting the real living wage to mitigate in-work poverty. According to the Living Wage Foundation, approximately 300 businesses in the region employ around 15,000 workers at this wage level. Truro Foodbank has reported a decrease in individuals seeking assistance over the past two years, coinciding with more employers implementing higher pay rates.
The national living wage, which is legally mandated, stands at £12.21. However, advocacy groups argue that the real living wage should be set higher at £13.45 to ensure employees can manage their expenses and save for emergencies. Simon Fann, chair of the Cornwall Living Wage Place Group and manager of Truro Foodbank, noted that 30% of foodbank users in 2023 were employed. He indicated that addressing pay disparities could significantly impact the number of individuals relying on food assistance.
Business owners have shared mixed perspectives on adopting the real living wage. Patrick Langmaid, Managing Director of Mother Ivey’s Bay Holiday Park, mentioned that paying the real living wage has enabled him to attract and retain staff more effectively, reducing recruitment and training costs. Conversely, Ann Vandermeulen from the Federation of Small Businesses emphasized the challenges small employers face, particularly in sectors like tourism, where profitability can be influenced by variable factors such as weather conditions.
While some workers, like maintenance staff member Warren Constance, feel the real living wage enhances their sense of value in their roles, Vandermeulen pointed out potential trade-offs, including the possibility of reduced staffing levels to accommodate higher wages. This situation raises questions about how businesses can balance fair compensation with operational sustainability in fluctuating economic conditions.
Source: https://www.bbc.com/news/articles/c3643x1jd28o?at_medium=RSS&at_campaign=rss