Day 180 - 31 Oct 95 - Page 35
1 distribution and that the floor of pay, the minimum wage
2 threshold, should stand at two-thirds of the average for
3 men.
4
5 MR. MORRIS: And the Council of Europe's decency
6 threshold -----
7 A. If I may, as the paragraph says -- I am talking a bit
8 slowly -- as the paragraph says under the heading "7
9 million on low wages", in 1984/5, the TUC adopted
10 two-thirds of the average as a guideline for union
11 negotiators, people like me at that time; and of course, as
12 the paragraph goes on to say, it is a moving target
13 because, as wages steadily rise, following the cost of
14 living and other factors, then the floor itself would be
15 pulled up, would be pulled up every year. Importantly, it
16 is the minimum equal pay target, too, because it defines
17 the floor for all employees, irregardless of gender, race,
18 whatever.
19
20 MR. MORRIS: You have said in that paragraph: "The Council of
21 Europe's decency threshold formula is that no wage should
22 be less than 68 per cent of average earnings"; correct?
23 A. Absolutely.
24
25 Q. You agree with that, do you?
26 A. I agree with it -- I agree with what you have just
27 said, and -----
28
29 MR. JUSTICE BELL: The 68 per cent there, is that of average
30 earnings right across the field, not just manual?
31 A. You are correct.
32
33 Q. So that probably is a radically different figure, is it
34 not?
35 A. As it turns out, my Lord, it is not -- in the average,
36 it is not very different; and I will explain one reason
37 why. It is based on full-time earnings.
38
39 Q. It is based on full-time?
40 A. Full-time earnings of men and women.
41
42 Q. So it is not just manual men?
43 A. It is men and women; and, because it is women's
44 part-time earnings, especially their hourly rates, that are
45 the lowest of the low, they are discarded from this Council
46 of Europe formula; it excludes part-time women.
47
48 MR. MORRIS: In your statement at paragraph 21, you have said
49 that the decency threshold of the Council of Europe would
50 be £221.50 a week.
51 A. In 1994.
52
53 Q. Sorry, in 1994.
54 A. Yes. The Council of Europe -- is it 27 European member
55 states, Britain an affiliated state -- Council of Europe
56 setting standards on a wide range of social policy issues,
57 including employment, determines that in order to help
58 establish this level playing field in the European economy,
59 68 per cent of the average in any affiliated state. So it
60 is not one amount of AQ across Europe; it is not an AQ
