Able Magazine reports from the CBI Conference in London.
A slightly overdue backlash to Lord Freud’s recent gaff over minimum wages started yesterday at the most unlikely event: the annual CBI Conference. Although David Cameron and Ed Miliband made the headlines by outlining their commitments to business (especially in an EU context) it was Archbishop of York, Dr John Sentamu who really took the theme of the event: ‘Growth For All’ to the heart of the debate.
Questioned about whether more companies should pay the living wage (above that of the legal minimum wage) the Archbishop suggested a very blunt solution saying that bosses should “Give up their bonuses and give up their pay rises” and “Just get on with it”. Sentamu urged the gathered business leaders to “Set a trend and let others be ashamed” regarding the pay and conditions of employees.
The panel, which also included Chief Executive of Adnams, Andy Wood, Chairman of the Social Business Trust, Damon Buffini and Chief Executive of Mitie Group plc, Ruby McGregor were in broad agreement that more could be done by the Treasury to simplify tax credits and the tax system in general to help employers to ‘do the right thing’ by their employees.
The business case
Dr Sentamu also pointed out that there were good business reasons for paying people more money in that employees would show more loyalty and stay with an employer for longer. In some cases, the Archbishop argued, this has “slashed training costs” because businesses don’t need to continually train new staff. Again, he added, that it was down to a unified approach from businesses and the Government saying: “Small businesses are willing to do more, government should do more for them” before addressing the audience more directly, saying: “I’m fed up with (hearing) ‘it can’t be done’. You people must come up with it!”
It was also pointed out that the landscape of the working world is changing and that those changes are going to be felt most keenly at the lower end of the wage economy with a suggestion that 50% of low skilled jobs are going to be automated within 20 years.
Deputy Director-General of the CBI, Katja Hall brought the session to an end with an appropriate reminder that the business leaders were indeed: “Gatekeepers of opportunity.”
