The Trades Union Congress is advocating for a unified minimum wage and the abolishment of zero-hour contracts amidst growing concerns over wage disparities and job insecurity for young workers in the UK.
In the UK, there is a growing challenge regarding the disparity in minimum wage rates for younger workers and the prevalence of zero-hour contracts, particularly affecting those in the 16-24 age group. The Trades Union Congress (TUC) revealed that 700,000 workers aged 18-20 are annually missing out on approximately £2,438 due to receiving lower minimum wage rates than their older counterparts. This has led to calls from the TUC for a unified minimum wage system, abolishing age-related disparities in pay. Currently, workers aged 23 and over earn a minimum of £10.42 per hour, in contrast to the £7.49 received by those aged 18 to 20. However, plans are in place to increase the minimum wage to £11.44 in April, extending this rate to workers aged 21 and 22.
Compounding the issue of wage disparity, a report by the Work Foundation highlighted an alarming increase in the number of young workers on zero-hour contracts, with an additional 136,000 young individuals placed on such contracts in 2023 compared to the previous year. The report emphasized that these contracts disproportionately impact young workers, particularly young women, and found that black workers were 2.7 times more likely to be on zero-hour contracts compared to white workers. Concerns have been raised about the financial insecurity and adverse effects on mental and physical health for those employed under these terms.
The TUC, led by General Secretary Paul Nowak, has been vocal in advocating for Labour’s New Deal, which proposes a real living wage for all workers and a ban on exploitative zero-hours contracts. The TUC’s stance and the findings of the Work Foundation underscore the need for systemic changes to ensure fair pay and job security for young workers in the UK, amidst ongoing discussions on how to address these challenges in the labour market.
