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Nestlé's Living Wage move a 'significant milestone'

The decision by food giant Nestlé to pay its contract staff and agency workers the Living Wage has been strongly welcomed by campaigners and trade union leaders.

Living Wage Foundation director Rhys Moore said: "The accreditation of Nestlé as a Living Wage employer marks a significant milestone in the campaign to tackle in-work poverty."

Unite's Len McCluskey was among union leaders who welcomed the Nestlé's plans. Credit: Sean Dempsey/PA Archive/Press Association Images

The head of the Unite union, Len McCluskey, said the decision was a "positive stance which shows that paying a living wage is not just good for communities but makes good business sense too".

The GMB union's Tim Roache suggested the move could enable "many more" big manufacturers to raise wages for the lowest paid employees.


Food giant Nestle to pay all workers Living Wage

Food giant Nestle has pledged to pay all of its workers the Living Wage.

The company already pays at least the Living Wage to its own employees, but it has now committed to pay agency workers and contract staff the rate, which is set at £8.80 in London and £7.65 elsewhere.

Nestle is one of the largest companies to commit to the Living Wage. Credit: Fredrik Von Erichsen/DPA/Press Association Images

The move means about 800 different contractors that work with Nestle will implement the Living Wage by December 2017.

Archbishop calls on Govt to raise care worker wages

The Government could drastically increase the amount of workers on living wage by raising the salaries of some of its own workers, like those in the care industry, the Archbishop of York has told Good Morning Britain.

Dr John Semantu dismissed suggestions raising the minimum wage to a living salary would prove too difficult for businesses and said:

"The Government is one of the biggest employers so if they really want to do it, for example in the care industry, the Government could...increase the kind of budgets, then it is quite possible people could be paid a living wage."

Living Wage may 'cost lowest paid job opportunities'

Raising salaries to the Living Wage does not take into account "the effects in wages might have on the job opportunities of the lowest paid," according to the Business Secretary.

Vince Cable hinted raising salaries to the Living Wage may have a detrimental effect on low-paid workers and said:

The Government supports businesses who voluntarily pay the Living Wage where it is affordable and doesn't cost jobs.

Unlike the minimum wage, which is carefully set by the independent Low Pay Commission, the Living Wage does not take into account the effect rises in wages might have on the job opportunities of the lowest paid.

To increase living standards, the Government has cut taxes making the average person £800 better off and taking 3.2m people out of tax all together, and from this October, those on the national minimum wage will see the first real increase in take home pay since 2008.

– Vince Cable
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