In its evidence to the Low Pay Commission, ACS has outlined convenience retailers’ concerns about the impact that rising wage costs will have on the local, flexible and secure jobs offered by the convenience sector.
Among new evidence shared with Low Pay Commissioners at an oral evidence session this week, ACS explained that 70% of people working in the convenience sector felt valued in their current role, 72% expected to stay in their role in the next five years, and that the convenience sector has a higher proportion of workers on permanent contracts than the economy as a whole. The findings are from ACS Colleague Survey, based on a sample 2,000 people working in convenience stores.
ACS urged the Low Pay Commission to show restraint when setting the 2021 wage rate and to consider revising their longer term goal of the National Living Wage rate of reaching two thirds of medium earnings by 2024, currently projected to reach over £10 per hour.
ACS chief executive James Lowman said: “Local shops offer secure, local and flexible employment opportunities, but this model is under threat from rising wage costs and the use of gig economy employment by competitors. We have also seen that rising wage costs continue to lead to retailers reducing paid working hours and pay differentials, making it harder to recruit and reward store supervisors and managers.
“We urge the Low Pay Commission to show restraint when setting rates for 2021 and review their long term target for wage rates to reach two thirds of median earnings by 2024. The Coronavirus outbreak is clearly going to impact sustained economic growth which is grounds for the Low Pay Commission to extend their longer term targets.”
ACS’ written evidence to the Low Pay Commission outlined that convenience retailers have responded to the 2020 National Living Wage rate by; increasing the hours worked in the business (64%), taking lower profits from the business (56%) and reducing staffed working hours (48%).
ACS’ written submission is available here.
