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Open Access
Article
Publication date: 2 October 2017

Stephanie Luce

The purpose of this paper is to provide background on the US living wage movement, with particular attention to recent victories, and also the ways in which the US movement…

10533

Abstract

Purpose

The purpose of this paper is to provide background on the US living wage movement, with particular attention to recent victories, and also the ways in which the US movement differs from living wage movements in other countries. It begins with some technical distinctions of terms, then analyzes the campaigns and movement for higher wages, and considers some of the challenges the campaigns have faced. It will conclude with some discussion about the future of the movement.

Design/methodology/approach

This is a general review of living wage campaigns in the USA. This is based on a review of existing literature and the author’s own prior research and participant observation.

Findings

The author argues that the initial living wage movement that began in the early 1990s was limited in scope but successful in building coalitions and political power to launch a much more expansive movement to raise wages in 2012.

Originality/value

This paper is a general summary of the last 20 years of living wage campaigns. It does not include new research.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Donald Hirsch

The purpose of this paper is to describe how the voluntary living wage (LW) in the UK is set. It examines how this calculation relates to contemporary approaches to setting wage

3385

Abstract

Purpose

The purpose of this paper is to describe how the voluntary living wage (LW) in the UK is set. It examines how this calculation relates to contemporary approaches to setting wage floors, both in relation to their goal of supporting adequate living standards and in relation to the place of wage floors in the labour mark.

Design/methodology/approach

The paper examines how compulsory and voluntary wage floors are being determined, in the UK and in particular the role of public consensus in contributing to the calculation and adoption of a LW. It then reflects on the future sustainability of a system of wage floors in which the concept of the LW plays a significant role.

Findings

The central finding is that widespread support for wages delivering socially acceptable minimum living standards has transformed the context in which low pay is being addressed in the UK. The LW idea has stimulated more decisive efforts to do so; however, if a compulsory version of a LW were to reach a level shown to be harming jobs, this could seriously undermine such efforts. Moreover, the extent to which adequate wages are compatible with high employment levels can also be influenced by state support for households, especially tax credits and Universal Credit.

Originality/value

The paper clarifies how the setting of the UK LW contributes to objectives related both to living standards and to labour markets, and critically addresses some key issues raised.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Paul John Sellers

The purpose of this paper is to explore the value that UK trade unions now place on the living wage.

10121

Abstract

Purpose

The purpose of this paper is to explore the value that UK trade unions now place on the living wage.

Design/methodology/approach

The author is the TUC’s Pay Policy Officer and examines the issue from a practitioner’s perspective.

Findings

The living wage now has a well-established place within the hierarchy of pay demands adopted by UK trade unions. This continues a tradition of unions supporting norms and regulations as an adjunct to collective bargaining. However, support had to be achieved through a process of negotiation with the broader UK living wage campaign.

Practical implications

The paper concludes that there are good prospects for the living wage, and thus for the continued trade union support.

Social implications

The living wage standard is seen as having a strong moral basis, which often helps to win agreement with good employers. This results in a steady stream of workers out of in-work poverty. The credit for such pay increases is often shared between employers and trade unions.

Originality/value

The paper is written by a practitioner with inside knowledge and experience of the entire course of the living wage campaign in the UK and how it has been adopted and integrated by trade unions.

Open Access
Article
Publication date: 2 October 2017

Edmund Heery, Deborah Hann and David Nash

This paper presents an account of the UK campaign for the voluntary Living Wage, an example of civil regulation. The purpose of this paper is to identify and characterize the…

6648

Abstract

Purpose

This paper presents an account of the UK campaign for the voluntary Living Wage, an example of civil regulation. The purpose of this paper is to identify and characterize the actors involved in the campaign, describe methods used and examine direct and indirect consequences of the campaign.

Design/methodology/approach

A mixed-method design is employed, reflecting the broadly framed purpose of the research. The research used semi-structured interviews with campaigners, union representatives and employers, observation of campaign activities and the creation of a database of Living Wage employers.

Findings

The campaign originated in the community organizing movement, but has involved a broad range of labor market actors, both “new” and “old.” A continuum of campaigning methods has been used, stretching from community mobilization to appeals to employer self-interest and corporate social responsibility. The campaign has recruited 3,000 employers, led to wage increases for thousands of workers and registered indirect effects by shaping the policies of governments, employers and unions.

Originality/value

The research presents a novel account of the UK’s distinctive Living Wage campaign, a notable example of the civil regulation of the labor market.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Peter Prowse, Ana Lopes and Ray Fells

The purpose of this paper is to demonstrate different approaches to effective campaigning in support of the Living Wage and so this paper contributes to the broader debate over…

3451

Abstract

Purpose

The purpose of this paper is to demonstrate different approaches to effective campaigning in support of the Living Wage and so this paper contributes to the broader debate over the nature of the union movement’s engagement with community groups in pursuit of workplace and social issues.

Design/methodology/approach

The paper presents a systematic comparison of a union-led and a community-led campaign, drawing primarily upon interview and survey data.

Findings

Though different, both campaigns met with a measure of success in improving employee pay and in increasing union membership suggesting a pragmatic approach to the building of union-community relationships.

Practical implications

The paper shows the need for campaigners to adopt a strategic approach in identifying the target for their campaign, and also the importance of shaping a persuasive argument.

Originality/value

The paper reaffirms the importance of traditional union-led campaigning alongside campaigning through engagement with community groups and so offers a broader framework for exploring the relationships between union and community groups.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Mathew Johnson

The purpose of this paper is to understand the impact of living wages on organisational pay systems.

3686

Abstract

Purpose

The purpose of this paper is to understand the impact of living wages on organisational pay systems.

Design/methodology/approach

The research draws on 23 semi-structured interviews with HR managers, trade union representatives, and politicians at four UK local government case study sites.

Findings

The findings suggest that living wages can have a positive impact on directly employed workers in cleaning, catering and care services, but the research also finds that the localised adoption of living wages can lead to significant wage compression, resulting in a broad band of “low skill-low wage jobs”.

Originality/value

The theoretical contribution is twofold. In-line with earlier research the “first-order” effects of living wages are clear: hourly wages for a large number of women in part-time roles increased sharply. However, this is only part of the story as “second-order” effects such as ripples and spill-overs are less extensive than suggested by other studies. This is due to the limited scope for trade unions to restore wage differentials through collective bargaining, the slow progress in extending the living wage to contracted staff, and parallel processes of downsizing and outsourcing.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Anna Ilsøe, Trine Pernille Larsen and Jonas Felbo-Kolding

The purpose of this paper is to investigate the effect of part-time work on absolute wages. The empirical focus is wages and working hours in three selected sectors within private…

2949

Abstract

Purpose

The purpose of this paper is to investigate the effect of part-time work on absolute wages. The empirical focus is wages and working hours in three selected sectors within private services in the Danish labour market – industrial cleaning, retail, hotels and restaurants – and their agreement-based regulation of working time and wages. Theoretically, this analysis is inspired by the concept of living hours, which addresses the interaction between working hours and living wages, but adds a new layer to the concept in that the authors also consider the importance of working time regulations for securing a living wage.

Design/methodology/approach

The paper builds on desk research of collective agreements and analysis of monthly administrative register data on wages and working hours of Danish employees from the period 2008-2014.

Findings

This analysis shows that the de facto hourly wages have increased since the global financial crisis in all three sectors. This is in accordance with increasing minimum wage levels in the sector-level agreements. The majority of workers in all three sectors work part-time. Marginal part-timers – 15 hours or less per week – make up the largest group of workers. The de facto hourly wage for part-timers, including marginal part-timers, is relatively close to the sector average. However, the yearly job-related income is much lower for part-time than for full-time workers and much lower than the poverty threshold. Whereas the collective agreement in industrial cleaning includes a minimum floor of 15 weekly working hours – this is not the case in retail, hotels and restaurants. This creates a loophole in the latter two sectors that can be exploited by employers to gain wage flexibility through part-time work.

Originality/value

The living wage literature usually focusses on hourly wages (including minimum wages via collective agreements or legislation). This analysis demonstrates that studies of low-wage work must include the number of working hours and working time regulations, as this aspect can have a dramatic influence on absolute wages – even in cases of hourly wages at relatively high levels. Part-time work and especially marginal part-time work can be associated with very low yearly income levels – even in cases like Denmark – if regulations do not include minimum working time floors. The authors suggest that future studies include the perspective of living hours to draw attention to the effect of low number of weekly hours on absolute income levels.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Christian Yao, Jane Parker, James Arrowsmith and Stuart C. Carr

A “livingwage (LW) is conventionally defined as enabling meaningful participation in society above subsistence through, for example, recreation, supporting a family, and…

11789

Abstract

Purpose

A “livingwage (LW) is conventionally defined as enabling meaningful participation in society above subsistence through, for example, recreation, supporting a family, and savings. There is increasing debate over LWs due to growing inequality, rising living costs and welfare reform but this remains largely framed by the econometric cost-benefit parameters that apply to minimum wage regulation. The capabilities approach advocated by Sen (1999) offers a different perspective that is inclusive of choice, contingencies and the inter-connections between quality of (paid) work and private life. The paper aims to discuss these issues.

Design/methodology/approach

The paper adopts this framework and utilises a qualitative exploration of the narratives of 606 New Zealand employees to understand perceived wage effectiveness. The results suggest that a focus on a specific LW rate might be conceptually limiting, in comparison to a LW range.

Findings

First, the findings indicate that there is a pivot range in which people move from self-assessed “survival” to “decent” income. Second, a LW may have more than a simply monetary effect in better meeting employees’ living costs; it can also improve well-being through subjective perceptions of valued freedoms to do with job satisfaction, equity and security.

Originality/value

The results thus draw attention to a wider notion of a LW in terms of personal and family well-being, utilising a capabilities approach, with implications for organisational practice, policy and theory concerning sustainable livelihood and the UN Sustainable Development Goals.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Michele Ford and Michael Gillan

Debates over the definition, processes and outcomes of minimum and “livingwages are heated and often politically contentious in garment-producing countries. Internationally…

5607

Abstract

Purpose

Debates over the definition, processes and outcomes of minimum and “livingwages are heated and often politically contentious in garment-producing countries. Internationally, there have been various initiatives to promote and support the implementation of a living wage for workers in labour-intensive manufacturing, ranging from corporate-driven social responsibility and multi-stakeholder initiatives to the long-standing living wage campaign of the global unions. One prominent regional initiative is the Asia Floor Wage Alliance (AFWA). The purpose of this paper is to assess its reach and effect in Southeast Asia.

Design/methodology/approach

A living wage campaign is assessed with reference to Indonesia and Cambodia, two important garment manufacturing countries in Southeast Asia. The paper draws on data collected in interviews with garment manufacturers, brand representatives, trade unionists and labour NGO activists, including members of the AFWA Steering Committee in Indonesia and Cambodia, complemented by a systematic review of documents and reports produced by the AFWA.

Findings

As the paper shows, despite a series of initiatives, the Asia Floor Wage has failed to gain traction in Cambodia or Indonesia. This is so, the paper argues, because national economic, political and institutional contexts are the primary drivers of the strategies and priorities of constituent organisations, governments and industry stakeholders. In the absence of robust local and regional coalitions of trade unions, efforts towards a common and coordinated regional approach to living wages are thus unlikely to gain traction.

Originality/value

To a large extent, the literature on the concepts and practices associated with the living wage has focussed on developed rather than developing countries. This paper extends the literature by providing a systematic examination of a transnational wage campaign in developing Asian countries.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 2 October 2017

Andrea Werner and Ming Lim

The purpose of this paper is to provide evidence for the motivations of SMEs for introducing the Living Wage (LW), focussing on retail as one specific sector. It develops…

3499

Abstract

Purpose

The purpose of this paper is to provide evidence for the motivations of SMEs for introducing the Living Wage (LW), focussing on retail as one specific sector. It develops understanding of the strategic benefits and challenges these employers face in balancing financial, ethical and social considerations in small businesses.

Design/methodology/approach

The study employed mixed methods: a survey and semi-structured interviews. The interviews are presented as part of three case studies.

Findings

Findings indicate that employers were, for the most part, motivated by personal ethics and beliefs about fair wages and social justice. They suggest that SME accrue benefits from LW accreditation such as reputational benefits and higher employee morale, but that there are also potential pitfalls of LW adoption related to pay structure and incentives. The sustainability of the LW emerged as an issue in terms of the long-term strategy and brand positioning of the companies involved.

Research limitations/implications

The nature of the research was exploratory and thus the study only allows for limited generalisation. Recommended avenues for further research include gathering data from different levels of organisations and from different stakeholders.

Originality/value

This is the first paper to investigate the drivers for, and implementation of, the LW in SMEs. The specific characteristics of SMEs – their ethos, low visibility, reliance on trusting relationships and limited resources, among others – make the study of why and how they choose to implement the LW very interesting. This study is the first to gather and analyse data from SME retailers and wholesalers that have implemented the LW.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

1 – 10 of 858