Minimum wage reminds us of progress despite opposition

THIS year marks 25th anniversary of the introduction of the UK minimum wage, a pivotal moment in labour history.

The National Minimum Wage Act 1998 introduced the first-ever minimum wage of £3.60 an hour, or £3.00 for those aged 18-21. This has risen steadily over the last two decades, and while the trade union movement has never accepted that this wage has been high enough to account for the full cost of living, we recognise that thousands of workers are better off each day as a result of it.

We especially welcome steps to adopt a Real Living Wage, at a higher rate than the Government minimum.

Last month a coalition of Newcastle businesses, charities and public sector organisations launched a plan to substantially increase the number of accredited Living Wage employers in the city.

This follows on from the announcement last October that 10,000 workers in Sunderland are in receipt of the Real Living Wage. Progress in both cities underscores our region’s commitment to ensuring that wages are not just minimum but fair, allowing workers to live with the dignity and stability.

The introduction of the minimum wage was met with dire predictions of economic decline and job losses. Those forecasts were proven wrong: the economy did not collapse, rather it was buoyed by the enhanced spending power of millions.

Today, we face similar “doomsday” warnings against proposals to strengthen workers’ rights through the TUC New Deal for Working People.

It is crucial to remember our history and to recognize these fears are unfounded, and that in the past, scepticism was silenced by success.

The New Deal for Workers, much like the minimum wage, aims to eradicate insecure work that too many still endure. It is increasingly clear enhancing workers’ rights does not hinder business, but rather fosters a more productive, motivated workforce.

This, in turn, supports our local economies, proving fair pay is not just a moral obligation but an economic imperative.

The shift towards fair wages has also brought tangible benefits to our communities.

It has improved living standards and helped counteract the rising cost of living — a challenge that affects our region disproportionately.

The Living Wage movement is a testament to what we can achieve when we prioritise the wellbeing of all workers.

This anniversary reminds us that progress often comes despite opposition, and that the wellbeing of workers is intrinsically linked to the health of our economy.

Let’s continue to champion these principles, not just in the North East but across the UK, paving the way for a fairer and more prosperous future.