Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
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Low pay in elite sport Why all major clubs and stadiums should pay the real Living Wage Newham Citizens celebrating the accreditation of West Ham’s ground London Stadium, August 2018 www.citizensuk.org
FOREWORD Citizens UK launched the Living Wage Campaign in 2001 and since then has won over £800 million of additional wages. So far, the campaign for a Living Wage has helped release over 180,000 people from the daily binds of rising bills and insecure work. Family and community life is deeply reliant on earning enough to survive and not having to hold down two or three jobs to stay afloat. Further research also shows that certain large employers, including sporting stadia, have a key role in the local economy and can bring hundreds of people out of working poverty if they ensure all workers earn enough to support a decent standard of living. Matthew Bolton Executive Director, Elite sports clubs, particularly Premier League Football clubs, Citizens UK are deeply-rooted in our communities and see huge commercial success. But despite the money flowing to owners, players and agents most stadium workers, including cleaners, catering staff and security guards, are paid less than a real Living Wage and, as a result, are struggling to keep their heads above water. In some cases, top players are earning more in a week than a night-shift cleaner would in 20 years. These clubs have a responsibility to reduce poverty in the communities their workers and home fans live in that goes beyond charitable endeavour. By paying a real Living Wage, they can lift hundreds – or thousands – of staff out of poverty and into a life of dignity. It’s fantastic to see some Premier League clubs, Everton,West Ham, Chelsea and Liverpool, as well as Championship clubs like Luton lead the way by accrediting with the Living Wage Foundation. English and Welsh rugby, cricket and the rest of the Premier League and Championship should follow their lead. In 2019 we are celebrating those clubs which do choose to go further and renewing our call for the major clubs and sporting bodies of the UK’s three biggest sports: football, rugby and cricket, to as accredit as Living Wage employers as a matter of urgency. We would also recommend Parliament, and particularly MPs, take a leadership role in making this happen with their local clubs and sporting bodies. The research outlined in this report shows both the urgent need for a Living Wage in sports, and that the public, especially sports fans, agree.
I. LOW PAY IN THE UK: A SNAPSHOT What is the real Living Wage? The real Living Wage is an hourly rate of pay set independently and updated annually. It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. As of the 5th November 2018, the real Living Wage is £9 an hour outside London and £10.55 inside London. The real Living Wage rates are calculated annually by an independent body and THE CALCULATION overseen by the Living Wage Commission, based on the best available evidence about living standards in London and across the UK. As of January 2019, there are almost 5,000 accredited Living Wage employers NUMBER OF across the UK – these employers agree to pay all their directly-employed and ACCREDITED regularly outsourced staff working on their premise the real Living Wage. EMPLOYERS How does it differ from the National Living Wage? In April 2016 the UK government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage Campaign – even calling it the ‘National Living Wage’. The UK government’s ‘National Living Wage’ is not calculated according to what employees and their families need to live. It is based on a target to reach 60% of median earnings by 2020. Under current forecasts this means a rise to less than £9 an hour by 2020. That’s why the Living Wage movement campaigns for all employers that can afford to do so to ensure their employees earn a wage that meets the cost of living, not just the government minimum. Low pay in the UK Research published last year found that almost 6 million UK jobs pay less than the real Living Wage and approximately 1 in 5 workers are earning below the rate. 2.5 million full-time and 3.2 million part-time jobs are paying less than people need to meet their living costs. Almost 6 million UK jobs pay less than the real Living Wage. Women are disproportionately affected by low pay: 27 per cent of all female employees are paid below the 22% of all UK workers earn less than the real Living Wage. real Living Wage.
The number of low-paid jobs is on the rise. The total number of jobs that pay below the real Living Wage has risen by 1.2 million compared to 2012. Polling for the Living Wage Foundation found that over a third of people paid below the real Living Wage said they had skipped meals regularly for financial reasons, over four in ten stated that they had fallen behind with household bills and a third said their pay negatively effects their relationship with their partner. In contrast, more than eight in ten felt being paid below the real Living Wage would improve their happiness and over seven in ten thought it would help improve their mental and physical health.1 II. THE REAL LIVING WAGE AND ELITE SPORTS The UK is rightly proud of our £233 million national sports. Football, rugby, tennis and cricket in particular are average turnover for a premier watched by global audiences and league football club. generate huge economic value. £57 million The UK’s Premier League football clubs turned over £233 million on profit made by the world’s richest average for the 2016/2017 season; club, Man Utd, in one year. the BBC and ITV reportedly pay around £50 million per year for £5.1 billion broadcasting rights for the Six Nations; and, the top 5 players in Premier League TV rights the Premier League currently earn 2016-2019 an average of £315,000 every week. £50 million reported cost of broadcasting rights per year for the Six Nations. Students from a school on the doorstep of Wembley Stadium in London call on the Chairman of the Football Association (FA), Greg Clarke, to make sure that all workers at the stadium are paid at least the real Living Wage. 1 Living Wage Foundation: Poorest working families struggle to put food on the table: https://www.livingwage.org.uk/news/news-poorest-working-families-struggle-put-food-table
Low pay in the sporting sector is twice as prevelant than the national average Those who work in sports clubs and facilities are disproportionately of workers in affected by low pay. 42% of all employees working at sports clubs and facilities are paid below the real 42% sports clubs and facilities are paid Living Wage. That compares to 1 in 5 below the real Living Wage. workers nationally This research shows that, despite the money in elite sport and for the top players, stadium workers, including cleaners, catering staff and security guards, are paid below a real Living Wage and, as a result, are struggling to keep their heads above workers. In some cases, top players are earning more in one week than a night-shift cleaner could in 20 years. The benefits of ‘anchor institutions’ paying the real Living Wage Large sports clubs, such as professional football clubs and stadia, are considered as anchor institutions (major public and private sector employers with strong historical, social or cultural links to the area). Along with universities, hospitals, local authorities and airports, elite sports clubs are big local employers and, as such, should play a vital role in giving back to their local community and tackling in-work poverty. Their significance also lies in their ability to play a leadership role when it comes to driving take-up of the Living Wage and generating shared economic growth1. The Smith Institute conducted research last year which found that if anchor institutions pay all their staff the real Living Wage, this could have a knock-on effect on other local employers deciding to join the movement. Research by Cardiff Business School also found that there are cluster effects driving take- up, they note: “over a third of employers said that peers had exercised at least some influences over their decision and this kind of influence can be seen in the population of Living Wage employers, which includes clusters of firms in particular industries.” The evidence is clear, major employers – like large sports clubs and stadia – can change social norms to increase take-up. Furthermore, paying the real Living Wage isn’t just good for workers, it also has positive effects for businesses and the wider economy. Evidence suggests that workers paid fairly are more productive, and as research conducted by the Smith Institute shows, the real Living Wage can also provde a boost for the local economy on which established employers are dependent. 1. Living Wage Foundation Analysis of ASHE data 2 Smith Institute Research: An analysis of the impact of the Living Wage on ten city regions: https://www. livingwage.org.uk/sites/default/files/The%20local%20Living%20Wage%20dividend%20REPORT%201.pdf
III. A SPOTLIGHT ON PRINCIPALITY STADIUM On the 3rd November 2018 a team of five community leaders from Citizens Cymru Wales attended the Wales vs Scotland rugby match in order to undertake a Real Living Wage audit at the Principality Stadium.The purpose of the audit was to identify whether any workers at the stadium are paid less than the Real Living Wage (£8.75 at the time, it is now £9.00 / h). The Principality Stadium is a flagship employer in Cardiff, has a £74.9m turnover, and makes a major financial contribution to the Welsh economy. The Citizens Cymru Wales team spoke to 20 staff working at the stadaium, including programme sellers, security staff, stewards, caterers and cleaners. Max, a cleaner at Principality Stadium, said: “It’s a hard job working at the Stadium.The shifts can be long and you are on your feet all day. We’d love to be paid the real Living Wage - it would boost my pay by 10% and make a massive difference to my life” Principality Stadium Audit: The Findings Are Principality Stadium workers paid below the real Living Wage? 9 of the 20 workers interviewed as part of the audit were earning less than the real Living Wage. How many workers earn below the real Living Wage at Principality Stadium? 200 This is a very conservative approximation on an analysis of job roles paid less than the real Living Wage. Which job roles at the Principality Stadium are paid poverty wages? The cleaners and catering staff reported being paid less than the real Living Wage, earning hourly wages between £7.50 and £7.83. Both job roles have been outsourced to private companies but would be included within Living Wage accreditation as they are solely based on the Stadium premises. How long would it take a Principality Stadium worker to earn what a Wales Rugby International player makes per game? 677 Thie Welsh Rugby Union pays its players a £5,300 appearance fee, 45 times more than the Stadium’s cleaners are paid over the same period. A cleaner would have to work 677 hours at the Stadium before they hours matched a player’s appearance fee, which would take them over 18 weeks.
IV. SPORTS CLUBS THAT PAY THE REAL LIVING WAGE The good news is that there are some sector leaders in football, clubs who have gone beyond the minimum and paid a real Living Wage to their staff. Currently four out of twenty Premier League clubs - Everton, Chelsea, Liverpool and West Ham are all accredited Living Wage all pay their directly and third-party staff the real Living Wage. Championship club Luton FC and semi-professional FC United of Manchester are also accredited Living Wage employers. Gary Sweet, CEO of Luton Town FC “Luton Town Football Club has proudly been an accredited employer since December 2014 – the first accredited professional football club in England. There is absolutely no excuse across the EFL and the Premier League not to be involved in such an excellent scheme.” Luton Town FC staff celebrate during Living Wage Week 2018 “It is individual employee stories which gives us more motivation than ever to contribute the scheme” “For example, Holly Kemp has been at the club for over five years, starting off as a temporary member of staff before becoming full-time in the Ticket Office. Being paid the real Living Wage helped her put down a mortgage for a house in the local area with her partner and, given the current climate and well-known difficulty of getting on the housing market as a first time buyer, we are pleased to see that us signing up to the Living Wage has gone a long way towards ensuring she has got on the ladder.”
Olawale Ajibola, London Stadium Worker “The difference the real Living wage has made to me and my colleagues’ lives is huge. A fellow worker told me that he no longer has to work back to back shifts and could therefore spend more time on his studies and supporting his mum. For another, after receiving the London Living Wage, he could finally buy a new pair of shoes. copyright: Ian Brodie For me and my colleagues, being paid a real Living Wage has provided stability and security, allowing us to finally plan for a more certain future. But many other stadium workers are not as fortunate. We were able to win change at the London Stadium and I am proud to be continuing working with Citizens UK to campaign for the real Living Wage at other sports clubs across the country.” Spotlight on Everton FC Everton FC began supporting the Living Wage in April 2015, ensuring that all permanently employed staff were paid at least the UK Living Wage rate. The Club, along with its charitable arm, ‘Everton in the Community’, became officially accredited as a Living Wage Employer in October 2016. The club chose to become accredited as they felt it made good business sense and reflected their reputation as ‘The People’s Club’, looking after those who live and work in the local community. The decision for Everton to become an accredited Living Wage Employer was the vision of the Club’s Deputy Chief Executive, Prof. Denise Barrett- Baxendale, MBE. She worked alongside the Club’s People Team (HR), to ensure all staff received a ‘fair deal’ from the accreditation while assessing its financial implications across the Club and Charity. Since accrediting as a Living Wage Employer and launching its people strategy, Everton FC has been included in The Sunday Times 100 Best Companies to Work For 2018. Staff at Everton FC have benefited from improved standards of living for themselves and their families, particularly the matchday staff. The club has also seen an improved retention of staff; around 25 of the staff who have been employed on the Living Wage have since moved into other roles and developed their careers within the Club.
The Club has also seen improved retention and influence as an ethical employer in Merseyside and nationally – the Club sat on the Steering Group for Living Wage Week 2017, hosting an event for local employers and presenting the Liverpool City Region Combined Authority with their Living Wage Employer plaque. Wendy Brown, Matchday Crowd Steward at Everton “Everton have set themselves a very good standard of earnings to all staff members. As an employee it’s very assuring that staff have a good, reasonable Living Wage rate that’s not the lowest rate set by the government. The Everton pay rise shows support for the staff members and is welcomed by its low paid workers.” Prof Denise Barret Baxendale MBE, CEO at Everton FC “At Everton we are committed to being a first-choice employer and becoming Living Wage accredited is a natural step towards that. We worked hard behind the scenes and consulted with our staff and stakeholders; it is extremely important to us that we treat all of our colleagues well and reward people fairly in terms of their pay. Supporting the accredited Living Wage is quite simply the right thing to do; it improves our employees’ quality of life but also benefits our business and society as a whole.” V. PUBLIC SUPPORT FOR THE REAL LIVING WAGE IN SPORTS We believe that paying the real Living Wage to stadium workers is simply the right thing to do and the public feel the same. Survation conducted poll of a demographically representative sample of 1044 respondents. 68%1 agreed that top sports clubs and venues should pay all their staff the real Living Wage. 93% of sports fans surveyed believe that 68% top flight clubs and major sporting venues should prioritise paying the real Living Wage [Citizens UK online survey] of the public believe that sports clubs and venues should pay the real Living Wage, according to a January 2018 Survation poll. 3 67.76%. Survation Polling carried out over January 2019
Who were the respondents? As shown below, the 1044 respondents to our Survation poll came from a broad range of backgrounds; across different regions, education levels, political views and incomes. 509 were men, whereas 535 were women. Which of the following statements best reflects your view? Top sports clubs and venues should pay all their staff the real Living Wage – 68% As long as top sports clubs and venues pay the Government’s legal minimum wage, it doesn’t matter whether they pay workers the real Living Wage – 32%
What do sports fans think? As part of our public research, we asked sports fans for their views on elite sports clubs and the role they play in their local community. 600 For this survey, over 600 sports fans (mainly those who follow football, rugby or cricket) completed an online sports fans surveyed online via email, social media and by community survey seeking their views on clubs’ organisations contributions to the community and pay practices. Interestingly, sports fans themselves overwhelmingly agree that clubs should pay their stadium staff the real Living Wage. When asked about issues they believe sports clubs should engage in, to better engage with their local community, fans thought ensuring all staff working at the club and stadium being paid the real Living Wage should be their priority. [The graph below shows their responses] Given their wealth, which of these issues should clubs prioritise? 93% of sports fans surveyed believe that top flight clubs and major sporting venues should prioritise paying all staff a wage based on the true cost of living. Paying staff Redeucing Prioritise the real the cost of funding charity Living Wage tickets work Michael Green, lifelong Man Utd supporter: “I’m ashamed that my great club, which can pay its players millions a year, from which the owners can earn millions of pounds every season, cannot agree to pay its very lowest paid employees the real Living Wage. Alexis Sanchez is reported to earn between £14m and £28m per year. On the other-hand Manchester United only pays its cleaners, bar staff and stewards less than £8 an hour” Alastair Wanklyn, a teacher at Ark Academy, where students and teachers are campaigning for Wembley to pay the real Living Wage: “Our school is adjacent to the stadium, with all the excitement that brings. Yet our students and their families see the FA as just another exploitative employer, paying staff on event days the absolute minimum. Earlier this year we took action outside Wembley stadium and asked FA Chairman Greg Clark to play fair and set an example for other employers in the sector.”
V. HOW YOU CAN CHAMPION THE REAL LIVING WAGE For MPs and politicans • Meet with Citizens UK to discuss how, together, we can take action to persuade major stadiums and elite sports clubs Our sporting across the country. • Write to your local sports club or sporting venue to broker a institutions will meeting to discuss the real Living Wage. only change if • During the Six Nations, please co-sign a letter with fellow MPs to rugby stadiums (Principality, Twickenham and fans, communities, Murrayfield) calling on them to go Living Wage employers politicians and • For details contact: michael.pugh@citizensuk.org individuals act. For the general public If you’d like to learn more about this campaign, please visit our website at www.citizensuk.org/living_wage to get involved. For elite sports clubs or sporting venues If you work for a club, please help your organisation do the right thing by its workers and their families. Get in touch with the Living Wage Foundation and find out how you can move towards accreditation as a Living Wage employer.
V.I WHAT THE PUBLIC, SPORTS FANS AND SPORTS INDUSTRY WORKERS SAY As someone who works “I work as a steward and it's in the football industry, long hours standing outdoors I don't believe clubs are “I do think ticket in bad weather and being paid doing enough to pay the prices should reflect minimum wage is horrendous hard-working staff behind local wages and the scenes considering the money they staff should be paid charge for a ticket” a decent wage” “Top sporting institutions should support their local areas better and set the standards in employment, charity work and environmental standards” Football is no longer a community sport but a playground for owners. Rugby and cricket are showing signs of moving that way. It is not I am a season ticket fair on UK workers and holder. My club now spectators who, in football, pays the real Living Wage. pay much more than they I have campaigned for would in Germany my employer to pay it. About Citizens UK Citizens UK organises communities to act together for power, social justice and the common good. We are the home of community organising in the UK. Our members are schools, churches, mosques, synagogues, parents groups, health practices and other diverse institutions in London, Manchester, Milton Keynes, Nottingham, Birmingham, Tyne and Wear, Wales and Leeds. We help these members to develop leaders, so they can participate in public life and hold politicians and other decision-makers to account on the issues that matter to them. @CitizensUK facebook.com/CitizensUK www.citizensuk.org Registered Charity Number: 1107264
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