Energy Firm SSE to offer Employees a Living Wage

Posted on 29 September, 2013 by Kirsten Kennedy

While job creation is on the rise and the unemployment rate has significantly stabilised, many British workers still find themselves short of cash as a direct result of low pay or underemployment.

Many believe this issue could be solved by employers agreeing to pay their employees a “living wage” – a rate calculated on an individual basis which would cover the basic cost of living, at present set hourly at £8.55 in London and at least £7.45 outside the capital.

Now, energy firm SSE has agreed to set this benchmark figure as its payment rate rather than sticking to the National Minimum Wage.

Alistair Phillips-Davies, chief executive of the firm, believes that paying a living wage shows that employers respect and value their workforce.

He says; “SSE is proud to become one of the first big companies to pay its employees the living wage.

“With a workforce of over 20,000, this demonstrates that we value the people who work for SSE very highly and we’re willing to pay them at a level which shows them we mean it.

“It’s a matter of basic fairness that people should get a wage which is enough to cover their living expenses and SSE believes in being fair.”

SSE is now the largest British company to introduce a living wage for its employees, based on market capitalisation. It joins insurance firm Aviva and accountancy company Deloitte in introducing the measure.

The Living Wage Foundation has reacted positively to the news, calling SSE’s decision a “real milestone in the history of the living wage movement”. SSE has now been added to the campaign group’s list of accredited employers, and with SSE demanding that its supply chain companies also sign up to a living wage programme by April 2014, it seems that the profile of the foundation will only be raised in the coming months.

Living Wage Foundation director Rhys Moore believes that this step by SSE will encourage other large employers to implement fairer payment methods.

He says; “We now have the first energy supplier, the first UK utility and the first company in the top third of the FTSE 100 to become an accredited living wage employer.

“There are now close to 400 accredited living wage employers across the UK, up from 70 this time last year.

“SSE’s accreditation is an example to other major employers to do the right thing and take a lead on the living wage.”

With the campaign receiving widespread political support, yet little enthusiasm from many employers, it is hoped that the influence of larger firms such as SSE will have a beneficial effect upon the movement. However, with many companies still concerned about their finances following four years of recession, it could be some time yet before earning a living wage becomes the norm for UK workers.

Do you think companies should be offered incentives for signing up for a living wage accreditation, or alternatively do you believe the national minimum wage should be increased?




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