Organised crime

10 April 2023

Paul Sellers – TUC Policy OfficerScarlet Harris – TUC Apprenticeships Policy Officer

Apprentice Pay

Apprentice Pay

• Legislative background - NMW - Apprenticeships Bill• What we know about apprentice pay

- By sector

- By gender

- Trends• Apprentice pay in unionised workplaces

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Apprentices and the NMW - summary

• who’s covered by the NMW now?• what will change in October 2010?• details of the new NMW Apprentice Rate• what are the NMW rates?• how is the NMW enforced?

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NMW + apprentices – who is covered now?• there are currently 3 rates of the NMW: for adults 22 and

above; 18-21s; 16-17s.• apprentices are entitled to the age-based NMW rates unless

they are under age 19 or in the first year of their apprenticeship.

• but apprenticeships are shorter than they used to be, and more than 3 out of 10 apprentices drop out.

• as a result, the TUC estimates that more than 60 per cent of apprentices are currently exempt from the NMW.

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What’s going to change in October 2010?• Adult rate of NMW to be paid at 21 rather than current age 22

– this will benefit some apprentices.• Those apprentices who are currently exempt will be covered

by a new National Minimum Wage Apprentice rate of £2.50 per hour.

• Remember that the new rate will apply to those under the age of 19 or in the first year of apprenticeship. Others get the appropriate age-based rate of the NMW.

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Details of the new NMW Apprentice Rate

• the new rate will benefit 14% of apprentices• both on and off-the-job training must be paid at least the new

rate. • all the rates will be reviewed every year by LPC.• all the rates will be enforced by HM Revenue and Customs.• transitional arrangements in England to make sure that no

apprentice earns less than £95 per week (current Minimum Funding Guarantee)

• the remaining non-employed apprenticeships will still be exempt, but they will end by 2011.

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What are the NMW rates?

From 1 October 2009 From 1 October2010

Adult rate £5.80 £5.93

21 year olds £4.83 £5.93

18 to 20 year olds £4.83 £4.92

16* and 17 year olds £3.57 £3.64

Apprentice rate** nil £2.50

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How can you enforce the NMW?• NMW help from your union, or from the Pay and Work Rights

Helpline: 0800 917 2568 http://payandworkrightscampaign.direct.gov.uk/index.html

• NMW is enforced by HM Revenue and Customs (HMRC), or directly by unions.

• if using HMRC, workers can appoint union officers or stewards as their agents, so that HMRC can discuss the case with them.

• if employers are not willing to pay up, enforcement is via Employment Tribunal

• for cases that fall outside of the ET time limits, can use the County Court to enforce the payment of wages provisions in the Employment Rights Act 1996 – 6 yr limit. 8

ASCL Act 2009

• The Apprenticeships, Schools, Children and Learning Act

• Received royal assent in November 2009 • Requires all apprentices to be employed and to

have a contract of employment• Effectively abolishes “Programme Led

Apprenticeships” or PLAs which are college based and unwaged.

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What do we know about apprentice pay?

• Labour Force Survey pay data

• DIUS 2007 Apprentice Pay Survey

• Pay information provided by unions

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DIUS 2007 apprentice pay survey

• Average apprentice pay £170 per week• Gender pay gap 21% • 12% of apprentices reported not receiving any pay

at all (41% in retail, 32% in health and social care)• Average pay for Level 2 apprenticeships was £159

in 2007 as compared to £179 for Level 3 apprenticeships

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DIUS 2007 Survey – Pay by sector

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DIUS 2007 Survey – Low Pay by sector

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Collective bargaining – apprentice pay in unionised workplaces• Pay for apprentices is higher in unionised workplaces

• Some examples of apprentice pay in collective agreements:

RMT/Alstom Transport West Coast Traincare (2009-10): £11,301 – 22,599 pa

Unite/Siemens Industrial Turbomachinery (2010-11): L3 apprentice upon completion £21,024

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Example of Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales 2010 - Unite

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Contact detailsPaul Sellers

TUC National Minimum Wage Policy Officer

Phone: 020 7467 1302

Email: PSellers@tuc.org.uk

Scarlet Harris

TUC Apprenticeships Policy and Campaigns Officer

Phone: 020 7467 1281

Email: Sharris@tuc.org.uk

Advocating for Apprentices 16 April 2010

Apprentice Pay Workshop16