From the TUC

Rättvisa lön: IKEA unveil plan to build a Living Wage

24 Jul 2015, By

Great news this week for Usdaw members in IKEA, as the Swedish flat pack furniture giant have committed to sign up as a Living Wage employer. This means the company will pay all staff at least £7.85, or £9.15 in London, in line with the rates set by the Living Wage Foundation.

Usdaw is the recognised trade union for IKEA staff, and will now be getting into the details over the coming months, about exactly how the new policy will be implemented.

It’s a ground-breaking development in the retail sector, where many companies have not yet achieved Living Wage levels for their basic hourly rate for all staff.

Many retail workers rely on tax credits to top up their incomes and households have been stretched to breaking point by years of Government imposed tax credit freezes and caps. The latest cuts in the Budget, mean that low wage working families will lose thousands of pounds a year – Money that’s simply not being made up in wage increases.

Improvements in pay are needed right across the retail sector and Usdaw has living wages as a cornerstone of their negotiations with employers. This announcement by IKEA strengthens unions’ case on pay for all shop workers, demonstrating that dealing with low pay in major companies is achievable.

One Response to Rättvisa lön: IKEA unveil plan to build a Living Wage

  1. Ian Dixon
    Jul 24th 2015, 3:35 pm

    Two pieces of good news in in one day!

    First was that the Mayor of New York plans to raise the minimum for fast food worker to $15ph (slightly below £10ph at current rates)

    Then we see IKEA commit to a move in the right direction too.

    Not really enough because any increase will be lost to reductions in tax credits though as other TUC reports have shown.