The rationale of a living wage is to tackle the poverty of low-paid workers. Australia has a ‘minimum wage,’ a legal requirement to pay employees a wage that guarantees ‘a standard of living reasonable for a human being in a civilised community.’ The right to an adequate standard of living is also enshrined in Article 11 of the International Convention for Economic, Social and Cultural Rights. In Australia the national minimum wage is set each year by the Fair Work Commission.
Some commentators argue that the minimum wage is too low, resulting in many low-paid workers with families living in poverty. They call for a ‘living wage’, pegged to average weekly earnings to ensure that the living wage ‘holds its relative value over time’ and allow people to live healthily.
Universal basic income
The rationale of a universal/unconditional basic income (UBI) is to tackle the poverty of unemployed and low-paid workers. A UBI would provide a guaranteed minimum income, without eligibility or work tests. The UBI is seen as a potential solution to job losses predicted to increase as a result of the rapid automation of jobs.
Examples of local governments as test sites for living wage / UBI
Artist basic income, San Francisco
San Francisco has introduced a basic income pilot program for 130 artists who will receive $1,000 per month for six months. The program is considered a pilot of a living wage for artists in the city, with the local council recognising the need to support artists to continue to live and work in San Francisco and contribute to the city’s recovery.
Living Wage accreditation, South London
In London, the South Bank Business Improvement District, in partnership with the Living Wage Foundation and London Citizens, assesses the value to South Bank employers of paying the London Living Wage and becoming accredited. They found that 75% of consumers would be prepared to pay more for the same product or service from a company that ensures its staff earn a wage they can live on. Lambeth Council campaigns for businesses in the district to support the Living Wage and now has 145+ businesses signed up.