In his regular column for Caerphilly Observer, Caerphilly Business Forum’s chair Tony Sheehan has welcomed Caerphilly County Borough Council giving its workers a pay rise.
Caerphilly County Borough Council made the bold move of becoming the first local authority in Wales to implement a Living Wage for all council employees.
The Living Wage is something that has been debated by businesses for many years and it is calculated according to the basic cost of living. For workers at Caerphilly Council, this will mean that employees are paid a minimum of £7.20 per hour.
As a business owner myself I feel that we have to endorse this. Yes, it will increase costs for some companies but it is far from money down the drain, whilst for a lot of businesses paying a Living Wage has been the minimum for some time.
Happy staff mean productive and loyal staff. An independent study of the business benefits of implementing a Living Wage policy in London found that more than 80% of employers believe that the Living Wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25%.
Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.
In no way can any of these things be deemed bad for business.
As solicitor Linklaters has been quoted as saying: “It is not just the right thing to do, it makes absolute business sense.”
This week we also saw the minimum wage for over 21s increase to £6.19. The disparity between this and the living wage is clear and, for me, emphasises how important the living wage is.
Cllr Keith Reynolds, deputy leader and cabinet member with responsibility for corporate services, said: “As a community leader, we hope other employers in the area will take our lead in implementing the Living Wage – we will certainly be working hard to promote the benefits of this excellent initiative.”
Tony Sheehan
Chairman, Caerphilly Business Forum
For more information about Caerphilly Business Forum and its events call 029 2125 1395 or email Natalie@cbforum.co.uk