How much would Miliband's living wage plans actually change?

"Naming and shaming" employers who don't pay the living wage is likely to have disappointing results.

Labour says it would "name and shame" employers that don’t pay all their workers a living wage – the income a person needs to be able to afford a basic standard of living. But how shaming would inclusion on Miliband's list of offenders be? Employers on it wouldn’t exactly stand out: KPMG calculates that one in five UK workers are not paid a living wage, which stands at £7.45, or £8.55 in London.

That makes for safety in numbers, and with low wages heavily concentrated in certain sectors – 70 per cent of cleaners, waiters, and kitchen staff are paid less than the recommended rate – the competitors of affected companies would be even less likely to pay the wage, keeping the pressure to change low.

Miliband’s pledge recalls the strategy of anti-tax-avoidance protest group UK Uncut, which drew attention to high profile companies that avoided large sums of tax, in the hope of shaming them into paying more. The campaign succeeded in raising the issue up the political agenda – but corporate tax avoidance is still rife, and there have so far been no major public reversals by their targets: at the height of the protests last year, companies like Vodafone reported record profits, whilst spokespeople simply repeat that they are following the law.

One aim of UK Uncut was to urge politicians to act on the issue and change the law, but as a politician himself, Miliband’s approach to low pay seems somewhat confused. Low paid workers may well also ask why Labour needs to be in government to do what a small campaign group did with a Twitter account and a lot of time on their hands.

UK Uncut also had the advantage of focusing its fire on specific, high profile offenders. But if a Labour government were to target specific companies to get high-profile results, they'd be likely to fall foul of EU state aid regulations: governments are strictly forbidden from picking on certain companies, or offering an "advantage in any form whatsoever conferred on a selective basis to undertakings by national public authorities".

The "name and shame" approach could even be embarrassing for Labour, which doesn’t have a spotless record on the living wage itself. Relying on negative media coverage and civil society to do the job could end up with the party turning its fire on itself. The party’s longest serving living Prime Minister only recently signed up to paying his staff the bare minimum wage, and Tony Blair, among others, would be one of those shamed for not paying the living rate if the proposals were comprehensively implemented.

If Labour is serious about workers earning a living wage then it will probably find the results of its flirtation with business voluntarism disappointing. The actions of companies are ultimately guided by the profit motive and shareholder value, and recent history suggests that activism can rarely, by itself, create corporate social responsibility out of thin air.

Ed Miliband is campaigning for companies to pay the living wage, currently £7.45 an hour. Photograph: Getty Images.

Jon Stone is a political journalist. He tweets as @joncstone.

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Former Irish premier John Bruton on Brexit: "Britain should pay for our border checks"

The former Taoiseach says Brexit has been interpreted as "a profoundly unfriendly act"

At Kapıkule, on the Turkish border with Bulgaria, the queue of lorries awaiting clearance to enter European Union territory can extend as long as 17km. Despite Turkey’s customs union for goods with the bloc, hauliers can spend up to 30 hours clearing a series of demanding administrative hoops. This is the nightmare keeping former Irish premier John Bruton up at night. Only this time, it's the post-Brexit border between Northern Ireland and the Republic, and it's much, much worse.   

Bruton (pictured below), Taoiseach between 1994 and 1997, is an ardent pro-European and was historically so sympathetic to Britain that, while in office, he was pilloried as "John Unionist" by his rivals. But he believes, should she continue her push for a hard Brexit, that Theresa May's promise for a “seamless, frictionless border” is unattainable. 

"A good example of the sort of thing that might arise is what’s happening on the Turkish-Bulgarian border," the former leader of Ireland's centre-right Fine Gael party told me. “The situation would be more severe in Ireland, because the UK proposes to leave the customs union as well."

The outlook for Ireland looks grim – and a world away from the dynamism of the Celtic Tiger days Bruton’s coalition government helped usher in. “There will be all sorts of problems," he said. "Separate permits for truck drivers operating across two jurisdictions, people having to pay for the right to use foreign roads, and a whole range of other issues.” 

Last week, an anti-Brexit protest on the border in Killeen, County Louth, saw mock customs checks bring traffic to a near standstill. But, so far, the discussion around what the future looks like for the 260 border crossings has focused predominantly on its potential effects on Ulster’s fragile peace. Last week Bruton’s successor as Taoiseach, Bertie Ahern, warned “any sort of physical border” would be “bad for the peace process”. 

Bruton does not disagree, and is concerned by what the UK’s withdrawal from the European Convention on Human Rights might mean for the Good Friday Agreement. But he believes the preoccupation with the legacy of violence has distracted British policymakers from the potentially devastating economic impact of Brexit. “I don’t believe that any serious thought was given to the wider impact on the economy of the two islands as a whole," he said. 

The collapse in the pound has already hit Irish exporters, for whom British sales are worth £15bn. Businesses that work across the border could yet face the crippling expense of duplicating their operations after the UK leaves the customs union and single market. This, he says, will “radically disturb” Ireland’s agriculture and food-processing industries – 55 per cent of whose products are sold to the UK. A transitional deal will "anaesthetise" people to the real impact, he says, but when it comes, it will be a more seismic change than many in London are expecting. He even believes it would be “logical” for the UK to cover the Irish government’s costs as it builds new infrastructure and employs new customs officials to deal with the new reality.

Despite his past support for Britain, the government's push for a hard Brexit has clearly tested Bruton's patience. “We’re attempting to unravel more than 40 years of joint work, joint rule-making, to create the largest multinational market in the world," he said. It is not just Bruton who is frustrated. The British decision to "tear that up", he said, "is regarded, particularly by people in Ireland, as a profoundly unfriendly act towards neighbours".

Nor does he think Leave campaigners, among them the former Northern Ireland secretary Theresa Villiers, gave due attention to the issue during the campaign. “The assurances that were given were of the nature of: ‘Well, it’ll be alright on the night!’," he said. "As if the Brexit advocates were in a position to give any assurances on that point.” 

Indeed, some of the more blimpish elements of the British right believe Ireland, wedded to its low corporate tax rates and east-west trade, would sooner follow its neighbour out of the EU than endure the disruption. Recent polling shows they are likely mistaken: some 80 per cent of Irish voters say they would vote to remain in an EU referendum.

Irexit remains a fringe cause and Bruton believes, post-Brexit, Dublin will have no choice but to align itself more closely with the EU27. “The UK is walking away,” he said. “This shift has been imposed upon us by our neighbour. Ireland will have to do the best it can: any EU without Britain is a more difficult EU for Ireland.” 

May, he says, has exacerbated those difficulties. Her appointment of her ally James Brokenshire as secretary of state for Northern Ireland was interpreted as a sign she understood the role’s strategic importance. But Bruton doubts Ireland has figured much in her biggest decisions on Brexit: “I don’t think serious thought was given to this before her conference speech, which insisted on immigration controls and on no jurisdiction for the European Court of Justice. Those two decisions essentially removed the possibility for Ireland and Britain to work together as part of the EEA or customs union – and were not even necessitated by the referendum decision.”

There are several avenues for Britain if it wants to avert the “voluntary injury” it looks set to inflict to Ireland’s economy and its own. One, which Bruton concedes is unlikely, is staying in the single market. He dismisses as “fanciful” the suggestions that Northern Ireland alone could negotiate European Economic Area membership, while a poll on Irish reunification is "only marginally" more likely. 

The other is a variation on the Remoaners’ favourite - a second referendum should Britain look set to crash out on World Trade Organisation terms without a satisfactory deal. “I don’t think a second referendum is going to be accepted by anybody at this stage. It is going to take a number of years,” he said. “I would like to see the negotiation proceed and for the European Union to keep the option of UK membership on 2015 terms on the table. It would be the best available alternative to an agreed outcome.” 

As things stand, however, Bruton is unambiguous. Brexit means the Northern Irish border will change for the worse. “That’s just inherent in the decision the UK electorate was invited to take, and took – or rather, the UK government took in interpreting the referendum.”