National Minimum Wage
Information on the NMW campaign
In April 1999 a national minimum wage was introduced for the first time in the UK. The rate is revised annually, and the new NMW rate comes in to force in October each year. Nine years on from the introduction of NMW many workers, including many industrial homeworkers are still not in receipt of the full level of NMW. Many homeworkers are still earning rates well below the NMW level even when the products they are producing are destined for sale in major supermarkets. All the major supermarkets, including the ‘big 4’ have signed up to the Ethical Trading Initiative Code of Conduct – but what does that mean to the workers who produce those products?
Homeworkers all over the country are employed to work for companies doing various types of work on products which are often sold in many major supermarkets and high street retailers. They do this work in their own homes instead of on the premises of the company. They are doing various packing and assembly jobs related to printing of paper based products such as greetings and Christmas cards, gift tags, stationery gift packs, and a whole host of novelty products; making a variety of different clothing and textiles items, including accessories, assembly of a range of electrical and electronic products, plastics and rubber assembly, trimming and packing, as well as jobs in service sector such as telephone sales, selling holidays and operating out-of-hours recovery services all done in their own homes.
As we move towards the Christmas period, shops are filled with products we are encouraged to buy, Christmas cards, gift tags, decorations and a whole host of novelty products and especially clothing and accessories, many of which may have been produced by homeworkers for very low rates of pay. As consumers the prices we pay the retailers often has little or no bearing on the rates paid to homeworkers. One thing is for certain retailers often make huge profits on these products.
We are often told that competition to produce products at ever-cheaper prices drives jobs away, but where to – to homeworkers in the UK or workers in other parts of the world, such as China. These cheaper production costs are rarely passed onto the consumer. The Ethical Trading Initiative and campaigns like ours are working to encourage retailers to be more responsible for all processes and workers throughout production chains involved in the making of their products. Homeworkers should not be exploited because of their need to earn an income, and the only way they can do this is to work at home.
In the UK there are laws that should protect all workers from bad working terms and conditions, including very low rates of pay but the reality is that many homeworkers in the UK are suffering from the same problems as other workers internationally, in the race for ever cheaper labour costs that is globalisation. Is it easier on our consciences if we think that these kinds of ‘sweatshop’ conditions and exploitation are only happening in other countries, when in reality they are also happening on our own doorstep?
Homework should be a real employment choice for people, with equality of terms and conditions and also pay. NGH would like to encourage best practice and adoption of Codes of Conduct by retailers, which would lay down minimum standards for all workers, including homeworkers and other workers in flexible and informal work.
In the UK homeworkers are specifically covered by NMW legislation but it is clear from information provided by homeworkers, that many are aware of their right to NMW but even where they are, they are less likely to enforce that right by making a complaint.
NGH continually monitors rates of pay and conditions reported to us by homeworkers from all areas of the UK. In 2007 NGH carried out research with a sample of homeworkers from around the country, we found that 52% of homeworkers interviewed reported that they were receiving the NMW, as compared to only 25% in earlier NGH studies. Although this suggests a significant improvement, it is nonetheless clear that far too many homeworkers continue to earn less than their legal entitlement. Some are on as little as £1 per hour.
Each year NGH submits evidence to the Low Pay Commission, the LPC then include this evidence in their report and recommendations to the government. In recent years NGH and members of the ETI successfully lobbied government to amend the NMW Regulations and remove elements relating to so-called 'fair estimate agreements' which had led to many homeworkers only being paid four-fifths of the level of the NMW. The law in this area has now improved - the challenge is to ensure employers are obeying it, and homeworkers are getting their legal entitlement.
Homeworkers who would like more information or advice relating to their employment can contact NGH on a Free phone Advice & Information line 0800 174 095. All calls are treated in the strictest confidence. NGH is not an employment agency, we do not have lists of employers and therefore cannot find homework jobs for people looking for homework employment.