Council. Report back from Membership and Representation Committee. Appendix A Paper on Low pay and the Living Wage presented to MRC on 02 July 2014

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1 Council Agenda Item 9 Date of meeting: 24 July 2014 Title of Paper: Report back from Membership and Representation Committee Appendices: Appendix A Paper on Low pay and the Living Wage presented to MRC on 02 July 2014 Presented by: Anne Wells, Chair of MRC Is a decision required? Yes No 1. The committee met on 2 July Report from Trade Union Governance Group and the UK Committees 2. We received an update on the work we have delegated to the Trade Union Governance Group and the UK representative committees. 3. The chair of TUGG and the chairs of the UK representative committees are working together on the project to deliver the new recruitment and retention tools for representatives. 4. We heard about the new focus for the project to develop the RCN s professional offer in the work place and the role of the learning representative. We asked for the involvement of the UK representative committees to be built into the project plan. 5. We also noted the evaluation report on the Learning and Development pathway and we support the recommendations identified for action in the report. The outcomes of the evaluation will be shared with the UK representative committees and the Boards. 9.Council MRC report to Council July of 7

2 Agenda Item 9 RCN Response to the NMC code consultation 6. We received a presentation on the key aspects of the NMC consultation on the draft code. We gave feedback on our views on the length of the code and discussed the impact that the additions may have on members. 7. We asked for clarification from the NMC on certain aspects of the proposals that would affect members working as full time trade union representatives. This information has since been circulated to the committee by . Mapping the location of Reps, casework and workplaces 8. We viewed a demonstration of the branch and workplace mapping exercise that has been started using data from the membership data base. This was very interesting and opens up many opportunities for identifying different ways we can support our members. 9. At our next meeting we will receive a report on work that has been done to look at how much case work is being carried out by representatives with trade union funded time from their employer. Pay Campaign 10. We received an update on the position for each country. We had a lengthy discussion on the Pay Strategy and the Campaign and suggested ways to further engage our representatives and members. HCA membership definitions 11. We considered the new HCA membership definitions paper and asked for a number of queries to be resolved before it was presented to Council for approval. This paper is on the agenda for Council to discuss. Living Wage 12. We considered a paper on the Living Wage and agreed to recommend to Council that the RCN should become a Living Wage accredited employer. The paper we discussed is attached at Appendix A and we are asking Council to approve this decision. Congress We reviewed the 2014 Congress items and agreed which member would lead on each item. Regular reports 14. We also received our regular reports. These included the latest membership numbers, an update on the Frontline First campaign, an update on the preparations for the party conferences and the development of the RCN general election manifesto. 9.Council MRC report to Council July of 7

3 Agenda Item We also received the regular Case Management report. We emphasised the importance of all accredited representatives complying with the RCN s policy and procedures around case management. The roll out of the new IT equipment will begin in the autumn Recommendation 16. Council is asked to agree that the RCN should become a Living Wage accredited employer 9.Council MRC report to Council July of 7

4 Membership and Representation Committee Date of meeting: 02 July 2014 Title of Paper: Low pay and the living wage Appendices: N/A Presented by: Gerry O Dwyer, Senior Employment Relations Adviser Is a decision required? Yes 1. Purpose 1.1 RCN Congress (June 2014) passed the following Resolution (Item 22); That this meeting of Congress urges RCN Council to adopt the Living Wage, and actively campaign for commissioners in health and social care to include paying the Living Wage in their contracts with providers. The Resolution was passed by 99.13% for (453 votes) to 0.87% against (4 votes). This paper now asks MRC to consider the outcome of the Congress debate and decide whether to recommend to Council that the RCN should adopt the Living Wage in relation to both negotiations on behalf of members and as an employer. 2. Detail 2.1 Low Pay Low pay is a term used in relation to low pay issues generally e.g. the National Minimum Wage (NMW) and the Living Wage campaign but is also used as a relative terms e.g. when the RCN argues that registered nurses are low paid in comparison to wage levels for other graduates or that some NHS staff (who might be above NMW or the Living Wage) are low paid and thus should have reduced NHS pension contributions. 9.Council App A to MRC report to Council July 2014 Page 4 of 7

5 2.1.2 All NHS Agenda for Change rates are above the national minimum wage (NMW), currently set at 6.31ph (for age 21 and over). In London all AfC staff above pay point 8 ( 17,425) receive more than the London Living Wage ( 8.80 per hour) on their basic pay alone. Outside London all NHS staff above pay point 4 ( 15,432) receive more than the Living Wage ( 7.65). Approximately 30% of RCN members are employed outside of the NHS. The RCN Employment Survey suggests that of these, 13% are paid on AfC rates. However, while wages for registered nurses in and outside the NHS are mostly underpinned by the AfC structure i.e. there is a recognised going rate for a registered nurse, this does not hold for health care assistants (HCAs) and nursing auxiliaries. Campaigning and bargaining for the Living Wage to be adopted across all employers would, if successful, have a major impact on the income of many of our lowest paid members. 2.2 The National Minimum Wage (NMW) The NMW is not intended to indicate a living wage but rather a wage below which people should not be contracted to work. Recent media coverage has highlighted ways in which some employers seek to reduce the value of the NMW. In one health example, care assistants were not paid for travel to a client s home and then only paid for work done in the house and not for return travel. The RCN may wish to take a view as to whether the NMW should be replaced by the Living Wage. 2.3 Minimum Income Standard The MIS was developed by the Joseph Rowntree Foundation (JRF) and is based on what members of the public think people need to achieve a socially acceptable standard of living. For example in 2013 a single person would have needed to earn at least 16,850 before tax and couples with children at least 19,400 each. Whilst an important contributing factor to the debate on low pay MIS is complex to argue for as terms such as socially acceptable standard of living are fluid social concepts with many interpretations. 2.4 The Living Wage The Living Wage campaign was started in 2001 by London Citizens and is now promoted by the Living Wage Foundation Currently it is set at 8.80ph for the Greater London area and 7.65 for outside. It is not a legal requirement for employers to pay the Living Wage but and employers are encouraged (by being supporters of the Living Wage) to commit to it. Where an employer signs up for accreditation with the Living Wage Foundation they not only commit to 9.Council App A to MRC report to Council July 2014 Page 7 of 7

6 paying the living wage but also to ensure that all that they contract with do likewise The concept of a living wage is increasingly becoming more high profile. The Greater London Authority (from 2005) and other local authorities and businesses support it. It is not a uniquely public sector issue and has the support of many private sector employers such as KPMG. The Living wage is also supported by the TUC and many of our competitor trade unions (e.g. UNISON and PCS) The Living Wage Foundation (LWF) accredits employers who wish to become living wage employers. They will work with and agree with prospective employers a time scale to reach Living Wage accreditation. 2.5 The RCN as an employer RCN pay rates are above the Living Wage although some particular groups of employees e.g. apprentices (whose rate of pay is set by external reference) may be paid less. There is no requirement to pay Modern Apprentices the Living Wage but employers are encouraged to do so. The RCN does not insist that contractors and suppliers should pay the Living Wage however it is the intention of RCN Estates to ask tendering companies for their position on the Living Wage. If the RCN were become a Living Wage employer it would have to ensure that, over a period of time, all contractors and regular suppliers paid the Living Wage. 3. Resources, costs and implications 3.1 There are no immediate costs associated with considering this issue. However should the RCN seek to become an accredited Living Wage employer it will have to ensure (over a period of time) that all its contractors and regular suppliers are Living Wage employers. It is possible that such employers may become so in order to attract RCN contracts. However it is more likely that the additional cost to contractors to the RCN would be met through an increased RCN contract price 4. Impact and/or risk assessments 4.1 Risk - At present the RCN is able to support the policy positions of other unions who support the adoption of the Living Wage. Any more formal commitment to addressing low pay for our members or others may bring the question - How can the RCN advocate for the low paid when they themselves are not committed to the Living Wage? Resolution 22 passed at Congress 2014 does not mandate RCN Council to adopt the Living Wage. However the virtually unanimous support it received does give an indication as to the strength of membership views on this issue. 9.Council App A to MRC report to Council July 2014 Page 7 of 7

7 4.2 Diversity - This paper covers all RCN members in all spheres of employment. Its main impact will be on HCAs and Nursing Auxiliaries who in the main will be women with caring responsibilities. The Scottish Government is a Living Wage employer and the adoption of the living wage is a policy of the Wales Partnership Group. In the NHS Staff Council and in evidence to the NHS Pay Review Body the RCN supports the position of other trade unions who have a policy position to support the Living Wage in the NHS. 5. RCN policies, procedures, Key Performance Indicators and strategic plan 5.1 Strategic Plan Supports Strategic Plan Paragraph 15 in Protects members pay.and supports their employment interests in the workplace 5.2 Confidentiality Statement This paper is not confidential. 6. Stakeholder involvement and member consultation 6.1. Congress gave a clear view on the issue of Living Wage. 7. Evaluation and review 7.1. MRC will wish to consider how and when to review implementation should a recommendation to support the Living Wage be agreed by Council. 8. Recommendations MRC to consider the RCN s approach to low pay in the public and independent sectors in the light of the outcome of Congress 2014 resolution 22 and; Whether to recommend to Council that the RCN should become a Living Wage accredited employer or; not to support the Living Wage but continue to support the policy positions of other organisations who support the introduction of the Living Wage.. This would be a continuation of the present position. Author: Gerry O Dwyer, Employment Relations Senior Adviser ET: Janet Davies 9.Council App A to MRC report to Council July 2014 Page 7 of 7