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Wages Councils

Volume 115: debated on Tuesday 5 May 1987

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asked the Paymaster General if he will publish in the Official Report the statistics on wages councils employment and compliance with wages councils rates in 1986 in the same format used in the reply given on 17 April 1986, Official Report, columns 493–98; if he will also indicate the effect on employment in each wages council sector of the removal of young people from wages council coverage; and if he will show for each wages council the extent of underpayment of young people aged under 21 years before their removal from wages council coverage.

The information requested is given in the tables, except that statistics relating to underpayments of young people under the age of 21 are not available.Attempts to estimate the employment effects of the reforms implemented by the Wages Act 1986 are not likely to be fruitful, but the removal of statutory minima, which prevent employers from offering jobs at rates which young people would accept, must result in increased employment.

All checks pay (visited and not visited)

Inspections by visit

Establishments checked

Percentage of register checked

Number of establishments underpaying

Percentage of establishments underpaying

Establishments visited

Percentage of register visited

Number of establishments visited underpaying

Percentage of establishment:; visited underpaying

Cotton Furniture and Cerement Making311·1311·1133·3
Cotton Waste Reclamation511·9511·9
Fax and Hemp314·3314·3
Fur329·639·3329·639·4
General Waste Materials Reclamation16510·274·21619·974·3
Hairdressing and Undertakings3,64011·184623·22,3797·384635·6
Hat, Cap and Millinery1410·51410·5
Lace Finishing22·9150·022·9150·0
Laundry10611·52523·5909·82527·8
Linen and Cotton Handkerchief147·9428·5147·9428·6
Made-up Textiles4112·324·84112·324·9
Ostrich and Fancy Feather624·0116·6624·0116·7
Perambulator and Invalid Carriage39·139·1
Retail Bespoke Tailoring6311·0914·26010·4915
Rope, Twine and Net76·776·7
Sack and Bag88·2225·088·2225·0
Toy Manufacturing269·6623·0248·9625·0
Retail Trades (Non Food)8,0117·71,71321·34,6344·51,71337·0
Retail Food and Allied Trades10,8769·82,20820·35,5395·02,20839·9
Licensed Non-Residential6,1009·51,24620·45,2668·21,24623·7
Licensed Residential Eastablishment and Licensed Restaurant3,66211·21,24233·93,35010·21,24237·1
Unlicensed Place of Refreshment1,81610·655030·21,6019·455034·4
Total35,7779·58,20522·918,3886·58,20633·7

Table 3

Wages covered by wages councils and results of pay checks in 1986

Estimated number of workers covered by Wages Council Orders at June 1982

Workers whose pay was checked by visit and other methods

Workers whose pay was checked by visit

Workers under-paid

Percentage underpaid of all workers checked

Percentage underpaid of all workers checked by visit

Arrears paid £

Arrears waived by-workers £

Arrears not pursued £

Arrears assessed £

1

12

3

4

5

6

7

8

9

10

11

Aerated Waters15,0003,21268810·030·14646
Clothing Manufacture252,80017,38815,7049425·426·057,4532,94735,47895,878
Boot and Shoe Manufacturing7,100518447275·216·04,1514744615,086
Button Manufacturing2,100164164
Coffin Furniture and Cerement Making300313113·233·22020
Cotton Waste Reclamation5003939
Flax and Hemp1,4003434
Fur4,50015315331·962·0522522
General Waste Materials Reclamation19,3001,5011,475151·001·01,1472262121,585
Hairdressing Undertakings135,60011,5497,4461,1149·6515·0124,82027,24018,127170,187
Hat, Cap and Millinery6,800607607
Lace Finishing800232314·354·34343
Laundry33,7002,4771,965662,663·45,6831,1254,48111,289
Linen and Cotton Handkerchief5,200191191105·245·2615615
Made-up Textile4,80046746720·430·4157157
Ostrich and Fancy Feather1,40019219210·520·54848
Perambulator and Invalid Carriage1,500127127
Retail Bespoke Tailoring5,200190177105·265·62,3501362,486
Rope, Twine and Net4,000189189
Sack and Bag1,400525247·697·7263263
Toy Manufacturing18,900544515234·234·58163011,117
Retail Non-Food Trades512,80058,37818,9742,7824·7714·7361,30099,65683,966544,922
Retail Food and Allied Trades519,30058,28120,5314,2857·3520·9423,802150,91999,692674,413
Licensed non-Residential508,70048,69831,1342,6565·458·5269,98052,91046,405369,295
Licensed Residential and Restaurant555,30049,45730,7512,3704·797·7226,99533,34239,931300,268
Unlicensed Place of Refreshment116,40017,0497,2841,2207·1616·7108,22438,86219,816166,902
Total2,734,800271,511139,36015,5335·7211·11,588,435407,701349,0062,345,14

1 The estimates in column 2 include workers under the age of 21 who are no longer covered by wages councils. Work is in hand to prepare revised estimates.

Table 4

Checks of pay carried out at establishments and underpayments found—Analysis by division—1986

All checks of pay (visited and not visited)

Inspections by visit

Division

Establishments checked 1

Percentage of register checked 2

Number of establishments underpaying 3

Percentage of establishments underpaying 4

Establishments visited 5

Percentage of register visited 6

Number of establishments visited underpaying 7

Percentage of establish-ments visited underpaying 8

London2,8526·360821·32,2144·960827·5
South Eastern4,47414·364614·42,7498·864623·5
Eastern5,34110·497418·23,5887·097427·1
South Western2,3197·383235·91,8025·783246·2
Midlands4,7558·294319·82,6944·694335·0
North Western4,96010·11,39728·23,5697·31,39739·1
Yorkshire and Humberside3,48610·380523·12,2186·580536·3
Northern2,28410·984437·01,7418·384448·5
Scotland3,75410·365617·52,4336·765627·0
Wales1,5528·650032·21,3187·350037·9
Great Britain35,7779·58,20522·924,3266·58,20533·7

Note:

The Divisional figures for the number of establishments where pay was checked by methods not involving inspection visits include multiple firms whose head office is located in the Division whose branches are in other areas. This needs to be taken into account when comparing the Divisional figures shown in columns 1–4 of Table 4.

Table 5

Workers whose pay was checked in each wages inspectorate division—1986

Division

Workers whose pay was checked by visit and other methods

Workers whose pay was checked by visit

Workers underpaid

Percentage underpaid of all workers checked

Percentage underpaid of all workers checked by visit

Arrears paid

Arrears waived workers

Arrears not pursued

Total arrears assessed

£

£

£

£

1

2

3

4

5

6

7

8

9

10

London23,74312,8519474·07·4143,81440,07028,956212,840
South East30,67816,8021,0623·56·3105,81321,8419,374137,028
Eastern42,68820,8321,7834·28·6179,84344,04626,883250,772
South West13,5439,9761,61411·916·2144,74417,93342,966205,643
Midlands49,37016,4351,8333·711·2191,09552,87058,982302,947
North West41,66419,9052,7016·513·6292,07194,80458,510445,385
Yorkshire and Humberside22,50613,5711,5767·011·6148,63746,49722,998218,132
Northern10,6438,2681,75116·521·2147,81210,33716,214174,363
Scotland28,86413,7451,2004·28·7116,22439,50832,182187,914
Wales7,8126,9751,06613·615·3118,38239,79551,941210,118
Total271,511139,36015,5335·711·11,588,435407,701349,0062,345,142
The Divisional figures for the number of workers whose pay was checked by methods not involving inspection visits include workers employed by multiple firms whose head office is located in the Division, who are employed in branches in other areas. This needs to be taken into account when comparing the Divisional figures shown in columns 2 and 5 of Table 5.