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Asda acts on younger workers' pay | Asda acts on younger workers' pay |
(about 1 hour later) | |
Asda has said that it will pay staff who are under 18 years old the same hourly rate of pay as older workers. | Asda has said that it will pay staff who are under 18 years old the same hourly rate of pay as older workers. |
The Leeds-based supermarket chain said it had taken the decision in the light of anti-age discrimination laws which came into force on Sunday. | The Leeds-based supermarket chain said it had taken the decision in the light of anti-age discrimination laws which came into force on Sunday. |
An Asda spokeswoman said: "We no longer think it's acceptable to have different pay rates for different age groups." | An Asda spokeswoman said: "We no longer think it's acceptable to have different pay rates for different age groups." |
Unions have welcomed Asda's decision and urged reform of the minimum wage rules to equalise pay rates. | Unions have welcomed Asda's decision and urged reform of the minimum wage rules to equalise pay rates. |
Pay debate | Pay debate |
Under minimum wage law, employers are allowed pay under-21s less than those over 21. | Under minimum wage law, employers are allowed pay under-21s less than those over 21. |
The government argues the pay differential helps to protect employment prospects for younger people. | The government argues the pay differential helps to protect employment prospects for younger people. |
This is a very important breakthrough at Asda for younger workers Jude Brimble, GMB union | This is a very important breakthrough at Asda for younger workers Jude Brimble, GMB union |
However, the British Chamber of Commerce told BBC News last week that the new anti-age discrimination law could mean that the system of youth pay rates could be legally challenged. | However, the British Chamber of Commerce told BBC News last week that the new anti-age discrimination law could mean that the system of youth pay rates could be legally challenged. |
In response, the government said the legislation was written to allow employers to pay their younger workers less. | In response, the government said the legislation was written to allow employers to pay their younger workers less. |
Asda said that the new age discrimination law was a factor in its decision to raise youth pay rates for its staff. | Asda said that the new age discrimination law was a factor in its decision to raise youth pay rates for its staff. |
"We have taken another look at our policy and have decided... you should be paid for the job you do, regardless of your age," an Asda spokeswoman said. | "We have taken another look at our policy and have decided... you should be paid for the job you do, regardless of your age," an Asda spokeswoman said. |
Raising pay rates will cost the supermarket an estimated £1.7m, pay rates for 16 and 17 year olds will rise from £5.19 an hour to £5.71. | |
The GMB union said other employers should follow Asda's example on youth pay rates. | The GMB union said other employers should follow Asda's example on youth pay rates. |
"This is a very important breakthrough at Asda for younger workers," said Jude Brimble, national officer for GMB members at Asda. | "This is a very important breakthrough at Asda for younger workers," said Jude Brimble, national officer for GMB members at Asda. |
"The Low Pay Commission (which advises on the national minimum wage) should follow suit and recommend that this becomes the law of the land," she added. | "The Low Pay Commission (which advises on the national minimum wage) should follow suit and recommend that this becomes the law of the land," she added. |
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