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TUC calls on government to implement 15 pound minimum wage

By Rachel Douglass

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Business

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The Trades Union Congress (TUC) has called on the UK government to increase the minimum wage to 15 pounds from 9.50 an hour, through a plan that aims to support pay growth and struggling employees.

In an open letter, the organisation said that the UK needs to transition the economy to high-wage, high-skilled and secure jobs and shift its economic model away from relying on low-paid and insecure work.

The TUC added that it is requesting the minimum wage to be raised by at least this October in line with inflation, as opposed to April next year, when the uprating was initially due.

Its plan includes delivering a return to normal pre-crisis wage growth, in which the TUC noted that up until the financial crisis, wages saw sustained growth in every decade.

In order to achieve this, the campaign suggested that the government must plan fair pay agreements, implement learning and skills strategies to fill labour shortages and reform corporate governance to prioritise long-term sustainable growth.

Additionally, the TUC has requested to raise the minimum wage target to 75 percent of median wages, an increase on the current 66 percent by 2024.

If its plans are implemented, the organisation said that the UK will see a return to normal wage growth, with average wages up to 20 pound an hour, as well as a 75 percent minimum wage target to establish the 15 pound minimum wage.

While it said that the government must be serious about wage growth in order to achieve the goal, it also noted that trade unions will need to play a key role in getting wages to these levels quickly.

Minimum wage
TUC