Good employment – a key ingredient in an inclusive economy
Written by Beth Sharratt, Policy & Research Manager at GMCVO
Broadly speaking, good employment includes the provision of secure and flexible work, fair pay, inclusive recruitment practices and opportunities. Those in good employment should not only be fairly compensated for their efforts, but benefit from a healthy work/life balance, with their individual circumstances taken into account.
It’s fair to say that as a society we’ve seen huge improvements in the quality of working life since the industrial revolution. Most won’t need a history lesson to understand the gains made over time and the pioneering status of Greater Manchester as an area where workplace organising is a badge worn with pride. The genesis of the cooperative movement and the Lancashire cotton workers stand against slavery during the American civil war (the majority of whom were women) are examples of this socially conscientious way of doing things. But it’s also fair to say that there hasn’t been a clear, linear pattern of improvement in working life for most people since then, with the current cost of living crisis highlighting how difficult it is for those with the least in our society.
In the current context, employers face a range of particular challenges influenced not just by decisions by UK government, but also geopolitical events and a broad-ranging economic and ecological crisis. For example; post-covid the number of working adults in the labour market has reduced significantly as people (those 50+ in particular) have dropped out of work. This is down to a variety of reasons which could include long covid or caring responsibilities, but is illustrative of a wider problem in our economy. The Centre for Cities think tank write about ‘an army of missing workers in Northern cities’ in a recent blog here. We’ve seen national government respond to this challenge in several ways, including in the last budget, the abolition of the lifetime allowance and cap on pensions. This could help entice some professionals in well-paid roles back to the world of work, but as policy move it’s not going to make a difference to others who have left lower-paid work.
While some have made a decision that going to work simply isn’t worth the reward, for those not in a position to be able to step out of the labour market, there are many challenges, including low-pay and lack of job security. We know that these are most likely to impact on marginalised communities such as disabled people, carers and those experiencing racial inequality.
The inequality created and exacerbated by poor employment is a symptom of what some may call, a broken economy (I’ve written about this before). However, there are tools we can use here in Greater Manchester to improve the employment landscape for those who face the greatest disadvantage, for example;
The Real Living Wage Foundation was set up ‘to encourage employers to play their part in tackling in-work and post-work poverty and provide a decent standard of living by paying the real Living Wage’. This rate is above the government national living wage and is related to the cost of living. It currently stands at £10.90 per hour outside of London.
As well as the focus on the wellbeing of workers and an important part of fighting poverty, there is also a strong economic prosperity argument for the RLW. Greater Manchester Combined Authority research estimates it could significantly boost the city-region’s economy for the benefit of the wider population.
Greater Manchester Good Employment Charter (GEC)
The Greater Manchester Good Employment Charter was created in response to the challenges posed by low-paid and insecure work in Greater Manchester (GM). It’s a voluntary membership and assessment scheme which has been created to improve employment standards across all GM employers. To become members organisations undergo a supported assessment process focussing on seven characteristics which were defined through a process of consultation with businesses across GM.
GM’s status as a ‘trailblazer’ has afforded the city-region control of some areas of economic policy. With GM having shown a lead with the development of the charter, it is clear there is significant support. It may be that further devolution deals will, in time, give GM greater control of workforce-related policy.
This is within a national context of prominent voices calling to improve the quality of employment for all. The government’s levelling up white paper states that ‘improving employment and skills is crucial for levelling up’. The Resolution Foundation think tank has recently launched its report on ‘Effectively enforcing labour market rights in the 2020s and beyond’, and the Labour Party Commission on the UK’s Future report ‘A New Britain: Renewing our democracy and rebuilding our economy’ - seen by many as an indicator of the likely content of the party’s manifesto ahead of the next general election - talks about the need for ‘full employment and good jobs’. This will be an issue relevant to public policy for the foreseeable future no matter what political changes occur.
Pressures on VCSE organisations
For voluntary, community and social enterprise (VCSE) employers we know that being able to pay the RLW, or be a member of the GEC isn’t simply a matter of choice. It’s a hugely tough and complex working environment right now for all organisations and there are many external factors that hinder even the best efforts. For organisations commissioned to deliver public services, one challenge is the real-term cuts to contract values, meaning organisations don’t receive the increase in funding they need to pay the RLW.
This is an issue that the Alternative Provider Federation – a partnership of VCSE organisations delivering health and care services, raised in a letter to Greater Manchester NHS Integrated Care in November 2022. They called for ‘equitable approaches for contract arrangements with VCSE providers’ in the context that ‘Many providers, faced with uncertainty around the financial agreements within contracts are facing real time financial pressures and are making decisions around sustainability …. Many will be compelled to restructure, downsize, use reserves and in worst case scenarios decisions will be made about the ability for organisations to remain a going concern.’
Sustainability is a crucial factor for many. Those running and governing VCSE organisations have a responsibility to think strategically and do all they can to ensure that they can be able to do the work they do for as long as it is needed. Balancing this with the day to day needs of staff, volunteers and communities can be extremely challenging at the best of times.
What can you do?
Alongside VCSE Accord partners, we are working to better understand the barriers faced by those in the VCSE sector who aren’t in a position to pay RLW, and to support them.
- If you would like support to achieve RLW accreditation or Good Employment Charter membership (a tailored programme of support for VCSE organisations to work towards GEC membership is currently being developed), get in touch with beth.sharratt@gmcvo.org.uk.
- Take part in good employment week – including a VCSE-focused event on Friday 23rd June – book your place here. Come together to celebrate good employment in our sector, learn more about the Good Employment Charter and Real Living Wage campaign, and share and network with colleagues across sectors.
- Read our guide to supporting VCSE employees as older carers and the guide from the Ageing Better on how to avoid language in job ads that can exclude some applicants.
- Take a look at the resources from the Good Employment Charter and Real Living Wage Foundation, there’s lots of up to date research, background information and helpful guidance here on things your organisation can do to make a difference.
