Nestlé introduces living wage for staff – a major game changer

Nestlé, the largest food company worldwide by revenue, has become the first major British manufacturer to pay ‘the living wage’, amid growing calls across the continent and beyond for corporations to tackle unfair pay, and raise the hourly rate to an acceptable minimum.

According to the Living Wage Foundation, the rate of £8.80 in London and £7.65 outside of the capital makes sound business sense. The UK minimum wage currently stands at £6.31, and has been attacked on all sides by critics who say the rate is not sufficient to cover an acceptable standard of living. “Paying the London Living Wage is not only morally right, but makes good business sense too,” says London’s Mayor Boris Johnson.

Paying the London Living Wage is not only morally right, but makes good business sense too”

The Swiss multinational already pays its 8,000 employees a living wage, though the firm’s latest move also extends to its 800 contractors. “We are proud to be the first mainstream manufacturer in the UK to become a Living Wage employer and see this as an opportunity to be a positive influence in our sector,” said Fiona Kendrick, Chief Executive of Nestlé UK in a statement. “As a major UK employer, we know that this is the right thing to do. Not only does it benefit our employees but also the communities they live and work in.”

The Living Wage Foundation has accredited close to 750 employers for paying the living wage, otherwise amounting to 45,500 workers, however, the number of those earning less is close to 5.2 million. In the UK, as with the rest of the world, the worst affected are those in the retail and hospitality sectors, as shown by a recent Demos report, which puts the ratio of executive to worker pay at 543-to-1 in the accommodation and food services sectors.