Nmw apps conf pp

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Nmw apps conf pp

  1. 1. Organised crime Apprentice Pay Paul Sellers – TUC Policy Officer Scarlet Harris – TUC Apprenticeships Policy Officer 27 April, 2010
  2. 2. Apprentice Pay • Legislative background - NMW - Apprenticeships Bill • What we know about apprentice pay - By sector - By gender - Trends • Apprentice pay in unionised workplaces 1
  3. 3. Apprentices and the NMW - summary • who’s covered by the NMW now? • what will change in October 2010? • details of the new NMW Apprentice Rate • what are the NMW rates? • how is the NMW enforced? 2
  4. 4. NMW + apprentices – who is covered now? • there are currently 3 rates of the NMW: for adults 22 and above; 18-21s; 16-17s. • apprentices are entitled to the age-based NMW rates unless they are under age 19 or in the first year of their apprenticeship. • but apprenticeships are shorter than they used to be, and more than 3 out of 10 apprentices drop out. • as a result, the TUC estimates that more than 60 per cent of apprentices are currently exempt from the NMW. 3
  5. 5. What’s going to change in October 2010? • Adult rate of NMW to be paid at 21 rather than current age 22 – this will benefit some apprentices. • Those apprentices who are currently exempt will be covered by a new National Minimum Wage Apprentice rate of £2.50 per hour. • Remember that the new rate will apply to those under the age of 19 or in the first year of apprenticeship. Others get the appropriate age-based rate of the NMW. 4
  6. 6. Details of the new NMW Apprentice Rate • the new rate will benefit 14% of apprentices • both on and off-the-job training must be paid at least the new rate. • all the rates will be reviewed every year by LPC. • all the rates will be enforced by HM Revenue and Customs. • transitional arrangements in England to make sure that no apprentice earns less than £95 per week (current Minimum Funding Guarantee) • the remaining non-employed apprenticeships will still be exempt, but they will end by 2011. 5
  7. 7. What are the NMW rates? From 1 October 2009 From 1 October2010 Adult rate £5.80 £5.93 21 year olds £4.83 £5.93 18 to 20 year olds £4.83 £4.92 16* and 17 year olds £3.57 £3.64 Apprentice rate** nil £2.50 6
  8. 8. How can you enforce the NMW? • NMW help from your union, or from the Pay and Work Rights Helpline: 0800 917 2568 http://payandworkrightscampaign.direct.gov.uk/index.html • NMW is enforced by HM Revenue and Customs (HMRC), or directly by unions. • if using HMRC, workers can appoint union officers or stewards as their agents, so that HMRC can discuss the case with them. • if employers are not willing to pay up, enforcement is via Employment Tribunal • for cases that fall outside of the ET time limits, can use the County Court to enforce the payment of wages provisions in the Employment Rights Act 1996 – 6 yr limit. 7
  9. 9. ASCL Act 2009 • The Apprenticeships, Schools, Children and Learning Act • Received royal assent in November 2009 • Requires all apprentices to be employed and to have a contract of employment • Effectively abolishes “Programme Led Apprenticeships” or PLAs which are college based and unwaged. 8
  10. 10. What do we know about apprentice pay? • Labour Force Survey pay data • DIUS 2007 Apprentice Pay Survey • Pay information provided by unions 9
  11. 11. DIUS 2007 apprentice pay survey • Average apprentice pay £170 per week • Gender pay gap 21% • 12% of apprentices reported not receiving any pay at all (41% in retail, 32% in health and social care) • Average pay for Level 2 apprenticeships was £159 in 2007 as compared to £179 for Level 3 apprenticeships 10
  12. 12. DIUS 2007 Survey – Pay by sector 11
  13. 13. DIUS 2007 Survey – Low Pay by sector 12
  14. 14. Collective bargaining – apprentice pay in unionised workplaces • Pay for apprentices is higher in unionised workplaces • Some examples of apprentice pay in collective agreements: RMT/Alstom Transport West Coast Traincare (2009-10): £11,301 – 22,599 pa Unite/Siemens Industrial Turbomachinery (2010-11): L3 apprentice upon completion £21,024 13
  15. 15. Example of Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales 2010 - Unite 14
  16. 16. Contact details Paul Sellers TUC National Minimum Wage Policy Officer Phone: 020 7467 1302 Email: PSellers@tuc.org.uk Scarlet Harris TUC Apprenticeships Policy and Campaigns Officer Phone: 020 7467 1281 Email: Sharris@tuc.org.uk Advocating for Apprentices 16 April 2010 15 Apprentice Pay Workshop

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