HC Deb 29 January 1970 vol 794 cc1696-8
10. Mr. Spriggs

asked the Secretary of State for Employment and Productivity if she will indicate the difference, in real terms, of the basic wage, and average take-home pay, of each of the service industries as against the distributive trades; and what action is being taken by the employers and trade unions concerned, in conjunction with her Department, to bridge the differential between the various industries.

Mr. Harold Walker

With permission, will arrange for some results of the new earnings survey in September 1968 to be circulated in the OFFICIAL REPORT. These are taken from comprehensive analyses of the make-up of earnings, published in the August, 1969 issue of the Department of Employment and Productivity Gazette.

I regret that it has not been possible to provide the information in the particular form requested.

The differences shown between the various service industries are not very wide, except that there are more opportunities for overtime working in the transport industry. My right hon. Friend intends to make references to the N.B.P.I. of cases of industries where low pay is a problem, and she is in consultation with the C.B.I. and T.U.C. about this.

Mr. Spriggs

Is my hon. Friend aware that my constituents employed in the service and distributive trades are receiving some of the lowest wages in the country? Will he give his attention to the claim made by their trade union representatives that selective employment tax is to blame for some of those low wages?

Mr. Walker

I am not sure that I could agree with my hon. Friend about the effect of S.E.T., but I said in my original reply that my right hon. Friend is concerned about the low pay in particular industries and is in consultation with the T.U.C. and the C.B.I. about what may be helpful references to the National Board for Prices and Incomes.

Mr. Higgins

Surely the hon. Gentleman should have a view on this because Professor Reddaway has now presented his report on the effect of S.E.T. in the distributive trades. What does the hon. Gentleman have to say? Has he read the report?

Mr. Walker

The hon. Gentleman knows that this is not a matter for my Department.

Following is the information:

The following shows what percentage of the gross earnings of employees in the sample in the new earnings survey September 1968 was described as basic pay by their employers. The figures relate to full-time manual men aged 21 and over and full-time manual women aged 18 and over who were paid for not less than their normal basic hours in the survey week.

Industry SIC (1958) Order Basic pay as percentage of gross earnings
Men Women
Transport and Communication XIX 66.2 76.7
Distributive Trades XX 77.2 90.6
Professional and Scientific Services XXII 79.7 90.1
Miscellaneous Services XXIII 79.1 87.7
Public Administration XXIV 81.8 90.9

Pay for overtime, shift, night and weekend work, payments by results, bonus, commission, holiday pay, guaranteed pay and other additions account for the remainder of gross earnings.