The Ritzy cinema workers' campaign shows the necessity of a living wage. Photo: Getty
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For dignity in work, a prosperous economy and a just society, living wages are vital

The Ritzy Living Wage campaign is an inspiring example of that call to action for raising wages.

"Would you like fair trade coffee or normal?" a barista once asked me.

Standing in a desolate service station, I had more reason than usual to despair at what is deemed normal.

"Err, fair trade please."

"That’s an extra 15p, is that ok?"

I paid up. But it was not ok.

The message was clear: if you want fairness, you’re going to pay for it. Because that’s not in our business model: "normal" business is bleeding people dry.

I was reminded of this recently when the successful culmination of a year of campaigning for a living wage by staff at Ritzy Cinema in Brixton, south London, was followed promptly by a redundancy notice from the management at Picturehouse Cinemas.

Ritzy workers described it as a "vindictive retaliation", and it's easy to see why.

A year of leafleting, strikes, awareness-raising, and negotiations had come down to this: a living wage for those who make it through the 90 day 'consultation period' which will leave at least 20 of the 93 staff out of a job. The huge public backlash and calls for a boycott has now resulted in a dramatic U-turn from Picturehouse management: announcing that plans to sack staff have been shelved.

Both instances – a multinational coffee chain and an art-house cinema group now owned by one of the biggest (and growing) cinema businesses in Europe – represent a paradox. In both, a thin façade of a commitment to equity is belied by a refusal to genuinely embed the principle of paying workers a wage on which they can maintain a decent standard of living.

In that dichotomy lies the problem, and also the solution. The pressure which businesses feel – to be seen to be doing the right thing – is already there: and turning it up is the key.

The Living Wage is calculated on the basis of the minimum a person needs to cover basic living costs. Across the UK it’s set at £7.65 an hour, while in London it’s £8.80. For the majority of people on minimum wage around the UK that’s an extra £1.15 an hour. Not much, but it can make a huge difference to people’s lives.

The cost of living crisis across the UK is acute, with low pay and stagnant wages, rising living costs, and welfare cuts forcing people to use food banks. The Trussell Trust reported a 163 per cent surge in emergency food parcels in 2013-14: up from 347,000 to 913,000.

A large proportion of these people are in work – just some of the 5.2m people now in low-paid jobs (up 250,000 from last year). Raising wages is a fundamental lever in tackling in-work poverty and boosting the economy.

The Ritzy Living Wage campaign is an inspiring example of that call to action for raising wages. The workers received huge local support, with high-profile figures queuing up to give them their backing, from Eric Cantona to Monty Python’s Terry Jones, Russell Brand, Owen Jones, Will Self and directors Ken Loach and Mike Leigh.

As the Ritzy workers have shown, campaigning for the living wage effectively can not only bring direct results: it has a deeper normative effect across society.

Curzon Cinemas, which has been the subject of a similar dispute over wages for the past year, has just agreed to pay its staff the living wage. The fallout from the Picturehouse debacle is not hermetically sealed: the Ritzy staff’s fight may be more important than they know.

This was mirrored in Scotland just this week. There has been a longstanding campaign to get Celtic Football Club to adopt the living wage, led by the Celtic Trust. Despite a petition and widespread support, the club has not yet been amenable to the idea. But then suddenly, with no campaign, no pressure, no petition, their Scottish Premier League rival Hearts announced that it will become a living wage employer for its 150+ staff.

"Hearts supporters did not need to start a petition to get the club to pay the living wage, they just realised it was the right thing to do," Peter Kelly, Co-Chair of the Scottish Living Wage Campaign, told me. "The more employers who sign up, the harder and harder it is for other employers to say that they cannot pay the living wage."

"We believe that making the business case (which is undeniable) and bringing the voices of low paid workers to the fore are our best campaigning tools. We also know that increasing support and awareness within the general public, especially customers/stakeholders, is a really important aspect of the campaign."

Football clubs south of the border are also coming under scrutiny, with Arsenal being urged to become a living wage employer by Islington Council – the first local authority in the UK to do so.

And the living wage is taking hold beyond local authorities and universities, which now represent 103 and 150 institutions paying the living wage, respectively. Some of the largest corporations in the world are signing up like Nestle, which employs over 8,000 workers.

Effective targeted campaigns work: but the ripples of progress they create are even more powerful.

Before the National Minimum Wage Act came into force in 1999, it was common to hear the same lines of argument which opponents of the living wage put forward. But the NMW is now not only enshrined legally, but accepted normatively across the political spectrum: it is a principle which, even if it was not in law, would be seen as necessary and desirable.

For dignity in work, for a prosperous economy and for a just society, living wages are a necessity. Wages which reflect basic living costs should never be a luxury, they should be "normal".

Luke Massey is a freelance journalist and Deputy Editor at Brixton Blog (and its sister print-paper Brixton Bugle).
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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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