National Express is to pay the living wage to all its workers in the UK, the first transport firm to pledge to do so.
The bus, coach and rail operator will become an accredited living wage employer, with hundreds of low-paid workers getting a significant pay rise, including contracted staff as well as employees.
Its largest domestic business, the bus division – based in the West Midlands – will pay the living wage from January 2016, with the group ensuring all its staff, including those on the higher London rate, earn above the threshold from 2017.
The transport secretary Patrick McLoughlin welcomed the decision. He said: “This important step will have a real impact and demonstrates the success of our transport sector. National Express plays a vital role in helping people go about their daily business.”
Ed Miliband, the Labour leader, said it was “fantastic news for their employees and an example of courage and leadership in the business community”. Labour has pledged to introduce tax breaks for firms that pay the living wage.
Dean Finch, chief executive of National Express, said: “Committing to become a living wage employer in the UK testifies to our determination to be the best possible employer.”
The Living Wage foundation said that around 1,200 firms had now signed up to pay the rate of £7.85 an hour (£9.15 an hour in London), around 20% higher (40% higher in London) than the national minimum wage of £6.50, but National Express was the first private transport group to commit.
Living Wage foundation director Rhys Moore said: “We hope their announcement today and the leadership that they are showing, will lay down a marker in the transport sector. The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay.”
Research from KPMG last year found that 22% of the working population are paid less than the living wage.
