SSE’s Alistair Phillips-Davies has joined a number of business leaders calling for the minimum wage to rise faster now that growth has returned to the economy.
Alistair and other prominent business figures including Alan Buckle, former Deputy Chairman of KPMG International and Sir Ian Cheshire, Chief Executive of Kingfisher plc have issued a letter making the case for ensuring UK employees benefit from the economic recovery - especially the lowest paid in society who find it hardest to make ends meet.
SSE is one of the largest UK Living Wage employers - committed to paying its staff, and all contractors employed through its £2bn-a-year supply chain, a fair pay. It remains the only energy supplier to commit to the pledge.
The letter raises concerns that the value of the minimum wage has fallen and makes the case that a stronger minimum wage will benefit businesses, improve public finances and help tackle low pay.
The business leaders state: "The economy is growing again but we must ensure that all employees are benefitting from the recovery. The challenge for employers and business owners is to invest in growth that creates more well-paid jobs and opportunities to progress. To deliver this requires long term investment, certainty from government, and improvements in the skills we need to succeed.
"Over the last 15 years, the National Minimum Wage has been successful in boosting pay at the bottom of society without leading to a loss of jobs. For businesses, it has created a level playing field, enabling employers to improve business performance and staff conditions without fear of being undercut by companies competing on lower wage rates.
"The Low Pay Commission was right to be cautious during the economic downturn. Now, as the economy recovers, we believe the minimum wage should rise faster than it has in the recent past. A stronger minimum wage will benefit businesses, improve public finances, and help tackle low pay."
Other signatories who signed the letter in a personal capacity include:
Sir George Bain, Chair of the Low Pay Commission (1997-2002 and 2008/09)
Jeremy Bennett, Chief Executive Officer for Europe, Middle East and Africa, Nomura Holdings
Chris Britton, Founder and partner, B&B Investment Partners and former Chief Executive, Findus Group
Alan Buckle, former Deputy Chairman, KPMG International
Sir Ian Cheshire, Chief Executive, Kingfisher plc
Keith Clarke, Chairperson, Tidal Bay Swansea Lagoon plc
Anne Deering, former Vice President, A.T. Kearney
Robert Elliott, Chairman and Senior Partner, Linklaters LLP
Margaret Exley CBE, Director, SCT Consultants
Iain Ferguson CBE, Chairman, Stobart Group Ltd
Simon Franks, Chairman, Redbus Group and Family Franks Foundation
Richard Greer, Laurel Capital Kingsway LLP
Steve Marshall, Executive Chairman, Balfour Beatty plc
Kevin Mcgrath, Chairman, M&M Property Asset Management LLP
Lord Paul Myners CBE, Chair of the Low Pay Commission (2006-2008) and former Chair, Marks & Spencer plc
Peter Neden, Interim Regional President, UK & Ireland, G4S
Alistair Phillips-Davies, Chief Executive, SSE plc
Robert Stephenson-Padron, Managing Director, Penrose Care
Richard Sykes, Chief Executive, ISS UK and Ireland
Bill Thomas, former Senior Vice President, Hewlett-Packard
Lord Adair Turner, Chair of the Low Pay Commission (2002-2006)
Dale Vince OBE, Chief Executive and founder, Ecotricity
Craig Wilson, Managing Director, Hewlett Packard Enterprise Services, UK