A Living Wage

How Kent Union can lead the way with a fairer deal for workers in Canterbury?

Luke Walter & Elliot Dickens

Contents: 1.0 A Living Wage 1.1 What is a Living Wage? 1.2 Why do we need a Living Wage? 2.0 2.1 2.2 2.3

Data relating to the cost of living for students Facts about student employment – the NatWest Student Living Index 2008. Cost of living at University of Kent compared to other regional universities. Other information relating to the need for a living wage in Canterbury.

3.0 3.1 3.2 3.3 3.4 3.5 3.6

Reasoning for a Living Wage in Canterbury. A Living Wage for Kent Union student staff? Why £7.20? The Case for Businesses. TUC document on how to implement a Living Wage into a Trade Union Living Wage employers List of Living Wage employers

1.0 A Living Wage 1.1 What is a Living Wage? Quite simply, a living wage is the standard someone needs to live on to be able to support their current housing situation, food requirement, healthcare, transport, lifestyle and any dependants they may have. In this context, a living wage will help students that are affected by the current economic problems as the cost of living in Kent is almost as high as London.

1.2 Why do we need a Living Wage? The current national minimum wage level is £5.73 per hour if you are over 22, £4.77 if you're between 18 and 21. In the South East, the high cost of living means that this minimum wage is too low to cover basic living costs – this is poverty pay. For students, part-time hours of employment and the majority of undergraduates being under 22 means that they are paid a pittance for their work. As a Union, we must pave the way for student employers by implementing a £7.20 living minimum wage for ALL our members that we employ. Kent Union must also lobby the University, and demand the same for student employees in Kent Hospitality. Finally, we must then lobby Canterbury City Council and other local businesses to set a standard, to set a £7.20 living wage for ALL in Canterbury. In the long term, this will mean that students can afford to take on fewer hours without a reduction in pay, and concentrate more time on their studies. This promotes the correct image for a student's union – supporting and encouraging its members to succeed, academically. This will also, in cases where students decide to cut their hours due to higher wages, allow the Union to have the capacity to increase the number of student staff – in order to cover every shift.

2.0 Data relating to living costs for students 2.1 Facts about Student Employment – NatWest Student Living Index 2008 • • • •

4 in 10 undergraduate students were employed in 2008. 750'000 undergraduates will be working at some point in the 08/09 academic year. This equates to around 42% of UK students. 25'000 more students in the UK took on employment in 2008 than in the year before. Over 2008, students are expected to have spent £10.8 billion on living and accommodation costs, this is a £0.5 billion increase from the previous year (spending by students in 2007 was significantly less at £10.3 billion).

2.2 Cost of living at University of Kent Canterbury in relation to other South-Eastern and London Higher Education Institutions Institution

Average Student Debt (per year) £

Average cost of rent (per week) £

University of Brighton

4646

72.21

University of Kent

6671

73.01

Kings College London

4714

89.11

London Met.

6480

81.58

University of London

3480

93.63

Royal Holloway

2793

84.69

University of Sussex 4480 85.99 Source: http://www.push.co.uk/League-tables-7/University-stats-table-2008-1/ Average Student Debt based on data collected on an individual's bank, Student Loans Company debt, credit cards etc.

2.3 Other information relating to the need for a Living Wage in Canterbury The universities, in their own information for freshers, declare to students wanting to study at South Bank University, City of London University, SOAS, University of Sussex and University College London that they should set aside between £35-45 per week for food. At Kent, the University's website recommends that students have £27.50-£50 per week set aside, so as to be available for food shopping. Again, we are shown similarities between the cost of living in London and the South East. As we can see in the above table, students at Kent have a far greater average yearly debt than students at universities in London, whilst there is also some parity in the cost of accommodation in the South East, with London being (unsurprisingly) slightly higher. This leads us to the obvious conclusion that Kent Students are more heavily in debt than those at some London universities – therefore the need to work for Kent students is perhaps greater. Also, that while it is not quite as expensive to rent in Canterbury as it is in London, higher wages are required for students to make ends meet and continue their studies.

3.0 Reasoning for a living wage in Canterbury 3.1 A Living Wage for Kent Union student staff? A living wage for Kent Union employees guarantees that Kent Union is about being at the forefront of progressive social policy, as well as student employee rights. A living wage is a REAL minimum wage, designed to tackle poverty wages and to bring dignity to jobs. It reassures Kent Union members that Kent Union’s interests are with the welfare and well being of them. Students could afford to take on fewer hours, and Kent Union can seek to create more jobs for its members. Kent Union can become a pioneer in the local community and for the South East. By adopting a living wage policy, and by lobbying Canterbury City Council to set up a Living Wage Unit, Kent Union would become a modern, effectual, and progressive campaigning student union.

3.2 Why £7.20? The London Living Wage Unit was set up by former Mayor of London, Ken Livingstone, back in 2005. Each year it collects and collates data to determine how much an individual

needs to afford the bare minimum. London is of course an extraordinarily expensive place to live and learn, but the South East is becoming ever closer. We are currently arguing for South East Weighting, similar to the London Weighting students in the capital receive. However, we can do more to help our student members of staff in immediate terms, and we can start by giving them a £7.20 living wage rate per hour. The 2008 Greater London Authority (GLA) report determined that the living wage for the city of London was £7.45 per hour. Currently the Fair Pay Network, a coalition of charities and trade unions including the National Union of Students (NUS), are researching and developing criteria to determine the actual living wage standard for each region around the country, as well as seeking to combat the high levels of wage inequality in the UK. However, there currently exists no data, and few initiatives, in the South East to eradicate low pay and to promote a fair living wage standard. I want Kent Union to change this. We are calling for £7.20 per hour; reflecting the 2007 London living wage. In London, the hourly rate was calculated by using the Basic Living Costs approach, and the Income Distribution approach - calculating exactly what a person required to live off per week and per month. Unfortunately, Kent Union does not have at its disposal the finances nor the resources to set up a permanent Living Wage Unit, however, we can set the bar high now, and we can lobby Canterbury City Council to set up a Canterbury Living Wage Unit, to determine what is fair pay, and fair pay for all, both part-time workers and for full-time workers within Kent Union, the University of Kent, and with the businesses in Canterbury.

3.3 The Case for Business Evidence suggests that fair pay policies, including a living wage policy, increases worker efficiency for the work places and organisations that adopt one. This is primarily felt through the contribution which fair pay levels have in combating the recruitment and retention problems which plague employers of low-paid workers. Evidence also suggests that fair pay policies help increase worker productivity. Fair pay levels have been found to increase worker motivation and reduce sickness absence levels. Fair pay policies also crucially enhance the reputation of any organisation as a responsible employer and a forerunner in the field of good corporate governance. The benefits of cultivating the image of an ethical and responsible employer will be felt through increased customer satisfaction and an enhanced business reputation. http://www.fairpaynetwork.org/?page=case_for_business

3.4 TUC Document of how to implement a Living Wage into a Trade Union http://www.tuc.org.uk/extras/livingwage.pdf

3.5 Living Wage Employers Already, there are a large number of living wage employers who carry the living wage logo. These include Barclays, Greater London Authority, Hilton Hotels, London 2012, Aspen Oil, NHS Trust, Rainforest Foundation, and Rengen Energy, plus many others who have incorporated the living wage into their procurement policies.

3.6 List of Living Wage Employers http://www.livingwageemployer.org.uk/list.htm