Caledonian MacBrayne becomes Scotland’s latest Living Wage employer

The firm said the accreditation has been earned by David MacBrayne Limited - CalMac’s parent company – and demonstrates the company’s commitment to its 1450-strong staff, many of whom live and work in remote and/or economically fragile areas around the Scottish west coast.

It also ensures Argyll Ferries’ employees are covered by the pledge.

The award has been warmly welcomed and endorsed by Annabelle Ewing MSP, Minister for Youth and Women’s Employment.

The accreditation is conveyed by the Poverty Alliance on behalf of the Living Wage Foundation and involves rigorous interrogation of a company or organisation’s pay structure both to its own employees and any contracted workers.

All employers will be expected to comply with National Living Wage (NLW) legislation by 2020, as announced by the Chancellor of the Exchequer in the recent Westminster budget.

But CalMac, along with 300 other Scottish companies and 1,600 across the UK as a whole, is going beyond any basic statutory commitment by signing up to the Living Wage Foundation’s higher rates.

The UK government’s NLW is a rise in the national minimum wage and is not as high the Living Wage determined by the Living Wage Foundation.

The accreditation process also involved Caledonian MacBrayne, which is the first major transport company in Scotland to adopt the standard, proving that it not only pays its own employees the Living Wage or above, but also regular company contractors.

The Living Wage and accreditation will also be reviewed annually.

Minister for Youth and Women’s Employment, Annabelle Ewing MSP, said: “CalMac Ferries Limited plays a vital role in island life, operating a lifeline ferry service and providing employment for the communities of the Clyde and Hebrides.

“Staff are at the heart of this organisation, from the crews manning the vessels and ports to the kitchen staff making the famous CalMac breakfasts, so I’m pleased to see CalMac recognise this by becoming a Living Wage employer.”

She added: “Research shows that the Living Wage can enhance productivity, reduce absenteeism and improve staff morale but we need even more organisations to recognise the benefits and sign up for accreditation and help those on the lowest pay.”

The Living Wage, as set out by the Living Wage Foundation, should not be confused with the National Living Wage (NLW) detailed recently in the Westminster budget.

The NLW is, effectively, a structured increase of the minimum wage, with the incremental rise beginning next year and continuing until 2020, when the NLW will be £9 for those 25 and over - it is less for younger people. The minimum wage becomes NLW next year at £7.20.

The Living Wage is significantly higher. Set by the Living Wage Foundation, not the government - currently its minimum level is pegged at £7.85 per hour for anyone over 18 - it is already 65 pence per hour more than the NLW will be when it’s introduced in 2016. It is reviewed on an annual basis and it is highly likely that, come 2020, the Living Wage Foundation level will be significantly higher than the statutory £9 mark.