HC Deb 12 November 1992 vol 213 cc896-7W
Mrs. Roche

To ask the Secretary of State for Employment how many checks were carried out by wages councils in London which found workers underpaid in each year since 1979.

Mr. McLoughlin

The information for the wages inspectorate's London division is as follows:

Year Number of checks which found workers underpaid Percentage of total checks
1979 680 18.9
1980 754 25.2
1981 710 25.9
1982 685 30.0
1983 780 35.8
1984 678 23.9
1985 655 30.3
1986 608 21.3
1987 270 7.2
1988 317 8.5
1989 229 9.0
1990 172 7.3
1991 294 5.5

Mrs. Roche

To ask the Secretary of State for Employment how many establishments in London were (i) found failing to post wages council notices, (ii) found failing to keep adequate records of wages paid, (iii) found failing to keep adequate records of hours worked and (iv) the subject of criminal prosecutions against employers under the Wages Acts, for each year since 1979.

Mr. McLoughlin

The information for the wages inspectorate's London division is as follows:

During the year Failed to post notices Percentage of total checks Failed to keep adequate records of wages paid Percentage of total checks Failed to keep adequate records of hours worked Percentage of total checks Were the subject of criminal prosecution under the wages act Percentage of total checks
1990 371 15.6 20 0.8 151 6.4 0 0
1991 672 12.7 73 1.4 310 5.9 1 0.02

Mr. Peter Bottomley

To ask the Secretary of State for Employment what assessment she has made of the level of bureaucracy added to the labour market or to burdens on business by the wages councils.

Mr. McLoughlin

Employers are required to maintain records, keep them for three years, make sure they are available for inspection on request, display notices of proposals made by wages councils, display notices of orders made by wages councils and provide any other information to do with the enforcement of a wages order requested by a wages inspector. When negotiating pay employers are constrained by existing minimum rates and the likely timing and magnitude of wages council increases for the different councils which may affect their businesses. Administration and wages inspection cost taxpayers some £2,500,000 per year and occupies about 130 civil servants.

Mr. Peter Bottomley

To ask the Secretary of State for Employment if she will estimate the employment elasticity for(a) each main wages council industry and (b) all employees in the public sector.

Mr. McLoughlin

The margins for error in estimating employing elasticities are far greater for individual industries than for the economy as a whole, and it is not possible to provide reliable estimates for particular industries. However, it is clear that the repeal of legislation, which prevents employers from offering jobs below specified minimum rates, should lead to additional opportunities for employment.

Mr. Peter Bottomley

To ask the Secretary of State for Employment what has been(a) nominal and (b) real change in (i) wages council rates and (ii) rates agreed by Government for their own employees, since 1979.

Mr. McLoughlin

Since 1979, the responsibilities of wages councils have changed and a number of councils have merged. It is not possible to calculate changes in rates on a comprehensive basis but the following figures are based on the average minimum rates set by six of the largest councils.

Changes in rates of pay: 1979–92

Minimum rates set by Wages Councils

  1. (a) nominal change of some 170 per cent.,
  2. (b) real percentage growth of about 16 per cent.;

Pay rates of non-industrial civil servants

  1. (a) nominal change of 128 per cent.,
  2. (b) real change of minus 3 per cent.

I regret that information on industrial grades is not available.