Ashok Kumar argues for greater penalties against bosses seeking to deny workers their rights, but stresses we must remember the responsibilities that go with these
DESPITE the positive impact that the national minimum wage has had, the Government has not done nearly enough to enforce it. According to the Office for National Statistics, up to 300,000 people are being paid below the minimum wage. This is illegal. Rather than just being forced to reimburse those employees they have cheated, companies deliberately refusing to pay the minimum wage should also be named and shamed, and hit with heavy fines – at the very least. The managers of companies found to be underpaying staff repeatedly should be forced to resign and even face criminal charges.
Trade unions have been campaigning hard to ensure workers in bars and restaurants receive tips on top of their wages, which are already in line with the minimum wage. Unions also seek to ensure staff are not penalised unfairly for the distribution of tips paid by credit or debit card. This practice is merely another attempt by employers to pay their staff as little as possible and it is simply unacceptable. This is another area where the Government has not done enough thus far. It has overlooked the concerns of a large section of the Labour Party’s support base.
While I was delighted that the Government recently announced a wide range of measures to improve the enforcement of the minimum wage, ministers still need to be much tougher.
The maximum fine for underpayment of the minimum wage – which was previously set at £5,000 – has now been removed and the most serious cases of non-compliance will be tried in court, possibly resulting in an unlimited penalty. The Government has also launched a consultation on how best to tackle the issue relating to the payment of tips, which should be concluded by the end of this month.
This is part of the Government’s “It’s Your Call” national minimum wage campaign. This will involve a mobile unit manned by fully trained advisers which will travel throughout Britain, over three months, visiting 28 towns and cities to make people aware of the wages to which they are entitled and their rights in law.
The Government has recently introduced proposals on welfare reform, designed to encourage people who are currently out of work to find employment. This carrot-and-stick approach includes a wide range of measures to improve people’s job prospects, but also to make it tougher for those who are not in work to claim benefits.
Many of these proposals are controversial and have been criticised by some for being too tough and others for not being tough enough. We must tread very carefully and avoid using language that might demonise legitimate benefits claimants – which seems to be the Tories’ agenda. It would be hugely damaging if people were deterred from claiming essential support by stigmatising benefits and Government help.
However, I am aware that many people who work hard to feed their families, pay taxes and contribute to society feel it is unfair that a small minority of people are unwilling to work and still receive Government money.
That is why I will be watching the progress of the welfare reform white paper very closely and lobbying ministers to ensure we strike the right balance and do not stigmatise those who are out of work through no fault of their own.
The Labour Party was created to fight for the rights of working people so that they can be self-sufficient and contribute to society. The introduction of the minimum wage has ensured the right of every citizen to receive a fair wage for their work. But with rights comes responsibilities. And one of those responsibilities is to work hard and make a contribution to society.
So the Government’s focus on enforcing the minimum wage on the one hand and encouraging people back into work on the other should be welcomed wholeheartedly. This must be accompanied by tougher measures to deter companies from cheating their employees out of money to which they are legally entitled.
Ashok Kumar is Labour MP for Middlesbrough South and East Cleveland
