Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net

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Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
Low pay in elite sport
 Why all major clubs and stadiums
 should pay the real Living Wage

      Newham Citizens celebrating the accreditation of West Ham’s ground London Stadium, August 2018

www.citizensuk.org
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
FOREWORD              Citizens UK launched the Living Wage Campaign in 2001 and since
                      then has won over £800 million of additional wages. So far, the
                      campaign for a Living Wage has helped release over 180,000 people
                      from the daily binds of rising bills and insecure work.

                      Family and community life is deeply reliant on earning enough to
                      survive and not having to hold down two or three jobs to stay
                      afloat. Further research also shows that certain large employers,
                      including sporting stadia, have a key role in the local economy and
                      can bring hundreds of people out of working poverty if they ensure
                      all workers earn enough to support a decent standard of living.
Matthew Bolton
Executive Director,   Elite sports clubs, particularly Premier League Football clubs,
Citizens UK           are deeply-rooted in our communities and see huge commercial
                      success. But despite the money flowing to owners, players and
                      agents most stadium workers, including cleaners, catering staff and
                      security guards, are paid less than a real Living Wage and, as a result,
                      are struggling to keep their heads above water. In some cases, top
                      players are earning more in a week than a night-shift cleaner would
                      in 20 years.

                      These clubs have a responsibility to reduce poverty in the
                      communities their workers and home fans live in that goes beyond
                      charitable endeavour. By paying a real Living Wage, they can lift
                      hundreds – or thousands – of staff out of poverty and into a life of
                      dignity. It’s fantastic to see some Premier League clubs, Everton,West
                      Ham, Chelsea and Liverpool, as well as Championship clubs like
                      Luton lead the way by accrediting with the Living Wage Foundation.
                      English and Welsh rugby, cricket and the rest of the Premier League
                      and Championship should follow their lead.

                      In 2019 we are celebrating those clubs which do choose to go
                      further and renewing our call for the major clubs and sporting
                      bodies of the UK’s three biggest sports: football, rugby and cricket,
                      to as accredit as Living Wage employers as a matter of urgency.
                      We would also recommend Parliament, and particularly MPs, take
                      a leadership role in making this happen with their local clubs and
                      sporting bodies.

                      The research outlined in this report shows both the urgent need
                      for a Living Wage in sports, and that the public, especially sports
                      fans, agree.
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
I. LOW PAY IN THE UK: A SNAPSHOT
What is the real Living Wage?
The real Living Wage is an hourly rate of pay set independently and updated
annually. It is calculated according to the basic cost of living in the UK, and
employers choose to pay the Living Wage on a voluntary basis.

As of the 5th November 2018, the real Living Wage is £9 an hour outside
London and £10.55 inside London.

The real Living Wage rates are calculated annually by an independent body and
                                                                                   THE CALCULATION
overseen by the Living Wage Commission, based on the best available evidence
about living standards in London and across the UK.

As of January 2019, there are almost 5,000 accredited Living Wage employers        NUMBER OF
across the UK – these employers agree to pay all their directly-employed and       ACCREDITED
regularly outsourced staff working on their premise the real Living Wage.          EMPLOYERS

How does it differ from the National Living Wage?
In April 2016 the UK government introduced a higher minimum wage rate
for all staff over 25 years of age inspired by the Living Wage Campaign – even
calling it the ‘National Living Wage’.

The UK government’s ‘National Living Wage’ is not calculated according to
what employees and their families need to live. It is based on a target to reach
60% of median earnings by 2020. Under current forecasts this means a rise to
less than £9 an hour by 2020.

That’s why the Living Wage movement campaigns for all employers that can
afford to do so to ensure their employees earn a wage that meets the cost of
living, not just the government minimum.

Low pay in the UK
Research published last year found that almost 6 million UK jobs pay less than
the real Living Wage and approximately 1 in 5 workers are earning below the
rate.
2.5 million full-time and 3.2 million
part-time jobs are paying less than
people need to meet their living costs.
                                             Almost  6 million
                                             UK jobs pay less than the real
                                             Living Wage.
Women are disproportionately
affected by low pay: 27 per cent of all
female employees are paid below the
                                             22%         of all UK workers earn
                                             less than the real Living Wage.
real Living Wage.
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
The number of low-paid jobs is on the rise. The total number of jobs that pay
below the real Living Wage has risen by 1.2 million compared to 2012.

Polling for the Living Wage Foundation found that over a third of people paid
below the real Living Wage said they had skipped meals regularly for financial
reasons, over four in ten stated that they had fallen behind with household bills
and a third said their pay negatively effects their relationship with their partner.
In contrast, more than eight in ten felt being paid below the real Living Wage
would improve their happiness and over seven in ten thought it would help
improve their mental and physical health.1

II. THE REAL LIVING WAGE AND
ELITE SPORTS
                                                   The UK is rightly proud of our

    £233 million                                   national sports. Football, rugby,
                                                   tennis and cricket in particular are
    average turnover for a premier                 watched by global audiences and
    league football club.                          generate huge economic value.

    £57 million                                    The UK’s Premier League football
                                                   clubs turned over £233 million on
    profit made by the world’s richest             average for the 2016/2017 season;
    club, Man Utd, in one year.                    the BBC and ITV reportedly pay
                                                   around £50 million per year for
    £5.1 billion                                   broadcasting rights for the Six
                                                   Nations; and, the top 5 players in
    Premier   League          TV      rights       the Premier League currently earn
    2016-2019                                      an average of £315,000 every week.

    £50 million
    reported cost of broadcasting
    rights per year for the Six Nations.

                                                                                     Students from a school
                                                                                     on the doorstep of
                                                                                     Wembley Stadium in
                                                                                     London call on the
                                                                                     Chairman of the Football
                                                                                     Association (FA), Greg
                                                                                     Clarke, to make sure
                                                                                     that all workers at the
                                                                                     stadium are paid at least
                                                                                     the real Living Wage.

1        Living Wage Foundation: Poorest working families struggle to put food on the table:
https://www.livingwage.org.uk/news/news-poorest-working-families-struggle-put-food-table
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
Low pay in the sporting sector is twice as
prevelant than the national average
Those who work in sports clubs
and facilities are disproportionately                                 of workers in
affected by low pay. 42% of all
employees working at sports clubs
and facilities are paid below the real
                                                            42%       sports clubs and
                                                                      facilities are paid
Living Wage. That compares to 1 in 5                        below the real Living Wage.
workers nationally

This research shows that, despite the money in elite sport and for the top
players, stadium workers, including cleaners, catering staff and security guards,
are paid below a real Living Wage and, as a result, are struggling to keep their
heads above workers. In some cases, top players are earning more in one week
than a night-shift cleaner could in 20 years.

The benefits of ‘anchor institutions’ paying the
real Living Wage
Large sports clubs, such as professional football clubs and stadia, are considered
as anchor institutions (major public and private sector employers with strong
historical, social or cultural links to the area). Along with universities, hospitals,
local authorities and airports, elite sports clubs are big local employers and, as
such, should play a vital role in giving back to their local community and tackling
in-work poverty.

Their significance also lies in their ability to play a leadership role when it comes
to driving take-up of the Living Wage and generating shared economic growth1.
The Smith Institute conducted research last year which found that if anchor
institutions pay all their staff the real Living Wage, this could have a knock-on
effect on other local employers deciding to join the movement. Research by
Cardiff Business School also found that there are cluster effects driving take-
up, they note: “over a third of employers said that peers had exercised at least
some influences over their decision and this kind of influence can be seen in
the population of Living Wage employers, which includes clusters of firms in
particular industries.” The evidence is clear, major employers – like large sports
clubs and stadia – can change social norms to increase take-up.

Furthermore, paying the real Living Wage isn’t just good for workers, it also
has positive effects for businesses and the wider economy. Evidence suggests
that workers paid fairly are more productive, and as research conducted by the
Smith Institute shows, the real Living Wage can also provde a boost for the local
economy on which established employers are dependent.

1. Living Wage Foundation Analysis of ASHE data
2 Smith Institute Research: An analysis of the impact of the Living Wage on ten city regions: https://www.
livingwage.org.uk/sites/default/files/The%20local%20Living%20Wage%20dividend%20REPORT%201.pdf
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
III. A SPOTLIGHT ON PRINCIPALITY STADIUM
On the 3rd November 2018 a team of five community leaders from Citizens
Cymru Wales attended the Wales vs Scotland rugby match in order to undertake
a Real Living Wage audit at the Principality Stadium.The purpose of the audit was
to identify whether any workers at the stadium are paid less than the Real Living
Wage (£8.75 at the time, it is now £9.00 / h).

The Principality Stadium is a flagship employer in Cardiff, has a £74.9m turnover,
and makes a major financial contribution to the Welsh economy.

The Citizens Cymru Wales team spoke to 20 staff working at the stadaium,
including programme sellers, security staff, stewards, caterers and cleaners.

Max, a cleaner at Principality Stadium, said:

“It’s a hard job working at the Stadium.The shifts can be long and you are on your
feet all day. We’d love to be paid the real Living Wage - it would boost my pay by
10% and make a massive difference to my life”

     Principality Stadium Audit: The Findings

      Are Principality Stadium workers paid below the real Living Wage?
                         9 of the 20 workers interviewed as part of the audit were earning less
                         than the real Living Wage.

      How many workers earn below the real Living Wage at Principality Stadium?

      200                This is a very conservative approximation on an analysis of job roles
                         paid less than the real Living Wage.

      Which job roles at the Principality Stadium are paid poverty wages?
                         The cleaners and catering staff reported being paid less than the real
                         Living Wage, earning hourly wages between £7.50 and £7.83.

                         Both job roles have been outsourced to private companies but would
                         be included within Living Wage accreditation as they are solely based
                         on the Stadium premises.

      How long would it take a Principality Stadium worker to earn what a Wales
      Rugby International player makes per game?

      677                Thie Welsh Rugby Union pays its players a £5,300 appearance fee, 45
                         times more than the Stadium’s cleaners are paid over the same period.
                         A cleaner would have to work 677 hours at the Stadium before they
      hours              matched a player’s appearance fee, which would take them over 18
                         weeks.
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
IV. SPORTS CLUBS THAT PAY
THE REAL LIVING WAGE
The good news is that there are some sector leaders in football, clubs who
have gone beyond the minimum and paid a real Living Wage to their staff.

Currently four out of twenty Premier League clubs - Everton, Chelsea,
Liverpool and West Ham are all accredited Living Wage all pay their directly
and third-party staff the real Living Wage.

Championship club Luton FC and semi-professional FC United of
Manchester are also accredited Living Wage employers.

Gary Sweet,
CEO of Luton Town FC
“Luton Town Football Club has proudly been
an accredited employer since December
2014 – the first accredited professional
football club in England. There is absolutely
no excuse across the EFL and the Premier
League not to be involved in such an
excellent scheme.”

      Luton Town FC staff celebrate during Living Wage Week 2018

 “It is individual employee stories which gives us more
motivation than ever to contribute the scheme”

“For example, Holly Kemp has been at the club for over five years, starting off as a
temporary member of staff before becoming full-time in the Ticket Office. Being paid
the real Living Wage helped her put down a mortgage for a house in the local area
with her partner and, given the current climate and well-known difficulty of getting
on the housing market as a first time buyer, we are pleased to see that us signing up
to the Living Wage has gone a long way towards ensuring she has got on the ladder.”
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
Olawale Ajibola, London
Stadium Worker
“The difference the real Living wage has
made to me and my colleagues’ lives is
huge. A fellow worker told me that he
no longer has to work back to back
shifts and could therefore spend more
time on his studies and supporting
his mum. For another, after receiving the
London Living Wage, he could finally buy a
new pair of shoes.                                         copyright: Ian Brodie

For me and my colleagues, being paid a real Living Wage has provided stability and
security, allowing us to finally plan for a more certain future. But many other stadium
workers are not as fortunate. We were able to win change at the London Stadium
and I am proud to be continuing working with Citizens UK to campaign for the real
Living Wage at other sports clubs across the country.”

 Spotlight on Everton FC
                                            Everton FC began supporting the Living
                                            Wage in April 2015, ensuring that all
                                            permanently employed staff were paid at
                                            least the UK Living Wage rate. The Club,
                                            along with its charitable arm, ‘Everton
                                            in the Community’, became officially
                                            accredited as a Living Wage Employer in
                                            October 2016.

 The club chose to become accredited as they felt it made good business sense
 and reflected their reputation as ‘The People’s Club’, looking after those who
 live and work in the local community.

 The decision for Everton to become an accredited Living Wage Employer
 was the vision of the Club’s Deputy Chief Executive, Prof. Denise Barrett-
 Baxendale, MBE. She worked alongside the Club’s People Team (HR), to ensure
 all staff received a ‘fair deal’ from the accreditation while assessing its financial
 implications across the Club and Charity.

 Since accrediting as a Living Wage Employer and launching its people strategy,
 Everton FC has been included in The Sunday Times 100 Best Companies to
 Work For 2018.

 Staff at Everton FC have benefited from improved standards of living for
 themselves and their families, particularly the matchday staff. The club has
 also seen an improved retention of staff; around 25 of the staff who have
 been employed on the Living Wage have since moved into other roles and
 developed their careers within the Club.
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
The Club has also seen improved retention and influence as an ethical employer
in Merseyside and nationally – the Club sat on the Steering Group for Living
Wage Week 2017, hosting an event for local employers and presenting the
Liverpool City Region Combined Authority with their Living Wage Employer
plaque.

Wendy Brown, Matchday Crowd Steward at Everton
“Everton have set themselves a very good standard of earnings to
all staff members. As an employee it’s very assuring that staff have
a good, reasonable Living Wage rate that’s not the lowest rate set by
the government. The Everton pay rise shows support for the
staff members and is welcomed by its low paid workers.”

Prof Denise Barret Baxendale MBE, CEO at Everton FC
“At Everton we are committed to being a first-choice employer and
becoming Living Wage accredited is a natural step towards that. We
worked hard behind the scenes and consulted with our staff and
stakeholders; it is extremely important to us that we treat
all of our colleagues well and reward people fairly in terms
of their pay. Supporting the accredited Living Wage is quite simply
the right thing to do; it improves our employees’ quality of life but
also benefits our business and society as a whole.”

V. PUBLIC SUPPORT FOR THE REAL
LIVING WAGE IN SPORTS
We believe that paying the real Living Wage to stadium workers is simply the
right thing to do and the public feel the same.
Survation conducted poll of a demographically representative sample of 1044
respondents. 68%1 agreed that top sports clubs and venues should pay all their
staff the real Living Wage.

           93%
     of sports fans surveyed believe that

                                                              68%
     top flight clubs and major sporting
     venues should prioritise paying the
     real Living Wage [Citizens UK online
     survey]
                                                        of the public believe that sports
                                                        clubs and venues should pay the
                                                        real Living Wage, according to a
                                                        January 2018 Survation poll.

3 67.76%. Survation Polling carried out over January 2019
Low pay in elite sport - Why all major clubs and stadiums should pay the real Living Wage - cloudfront.net
Who were the respondents?
As shown below, the 1044 respondents to our Survation poll came from a
broad range of backgrounds; across different regions, education levels, political
views and incomes. 509 were men, whereas 535 were women.

                                                             Which of the following
                                                             statements best reflects your
                                                             view?

                                                             Top sports clubs and venues
                                                             should pay all their staff the real
                                                             Living Wage
                                                             – 68%

                                                             As long as top sports clubs and
                                                             venues pay the Government’s legal
                                                             minimum wage, it doesn’t matter
                                                             whether they pay workers the real
                                                             Living Wage – 32%
What do sports fans think?
  As part of our public research, we asked sports fans for their views on elite
  sports clubs and the role they play in their local community.

    600
                                                            For this survey, over 600 sports fans
                                                            (mainly those who follow football,
                                                            rugby or cricket) completed an online
    sports fans surveyed online via email,
    social media and by community                           survey seeking their views on clubs’
    organisations                                           contributions to the community and
                                                            pay practices.

  Interestingly, sports fans themselves overwhelmingly agree that clubs should pay
  their stadium staff the real Living Wage.

  When asked about issues they believe sports clubs should engage in, to better
  engage with their local community, fans thought ensuring all staff working at the
  club and stadium being paid the real Living Wage should be their priority.

  [The graph below shows their responses]

Given their wealth, which of these issues should clubs prioritise?

                                                                 93%
                                                                 of sports fans surveyed believe that
                                                                 top flight clubs and major sporting
                                                                 venues should prioritise paying all
                                                                 staff a wage based on the true cost
                                                                 of living.

             Paying staff   Redeucing     Prioritise
             the real       the cost of   funding charity
             Living Wage    tickets       work

  Michael Green, lifelong Man Utd supporter:
  “I’m ashamed that my great club, which can pay its players millions a year, from which the owners
  can earn millions of pounds every season, cannot agree to pay its very lowest paid employees the real
  Living Wage. Alexis Sanchez is reported to earn between £14m and £28m per year. On the
  other-hand Manchester United only pays its cleaners, bar staff and stewards less than
  £8 an hour”

  Alastair Wanklyn, a teacher at Ark Academy, where students
  and teachers are campaigning for Wembley to pay the real
  Living Wage:
 “Our school is adjacent to the stadium, with all the excitement that brings. Yet our
 students and their families see the FA as just another exploitative employer, paying staff
 on event days the absolute minimum.

 Earlier this year we took action outside Wembley stadium and asked FA Chairman Greg Clark to play
 fair and set an example for other employers in the sector.”
V. HOW YOU CAN CHAMPION
THE REAL LIVING WAGE
For MPs and politicans
•   Meet with Citizens UK to discuss how, together, we can take
    action to persuade major stadiums and elite sports clubs               Our sporting
    across the country.
•   Write to your local sports club or sporting venue to broker a
                                                                        institutions will
    meeting to discuss the real Living Wage.                              only change if
•   During the Six Nations, please co-sign a letter with fellow
    MPs to rugby stadiums (Principality, Twickenham and
                                                                     fans, communities,
    Murrayfield) calling on them to go Living Wage employers             politicians and
•   For details contact: michael.pugh@citizensuk.org
                                                                         individuals act.

For the general public
If you’d like to learn more about this campaign, please visit our website at
www.citizensuk.org/living_wage to get involved.

For elite sports clubs or sporting venues
If you work for a club, please help your organisation do the right thing by its
workers and their families. Get in touch with the Living Wage Foundation and
find out how you can move towards accreditation as a Living Wage employer.
V.I WHAT THE PUBLIC, SPORTS FANS AND
SPORTS INDUSTRY WORKERS SAY

    As someone who works                                           “I work as a steward and it's
    in the football industry,                                      long hours standing outdoors
    I don't believe clubs are        “I do think ticket            in bad weather and being paid
    doing enough to pay the          prices should reflect         minimum wage is horrendous
    hard-working staff behind        local wages and
    the scenes                                                     considering the money they
                                     staff should be paid
                                                                   charge for a ticket”
                                     a decent wage”

    “Top sporting institutions should
    support their local areas better
    and set the standards in
    employment, charity work and
    environmental standards”

     Football is no longer a
     community sport but a
     playground for owners. Rugby
     and cricket are showing signs
     of moving that way. It is not        I am a season ticket
     fair on UK workers and               holder. My club now
     spectators who, in football,         pays the real Living Wage.
     pay much more than they              I have campaigned for
     would in Germany                     my employer to pay it.

  About Citizens UK
  Citizens UK organises communities to act together for power, social justice and the common
  good. We are the home of community organising in the UK. Our members are schools,
  churches, mosques, synagogues, parents groups, health practices and other diverse
  institutions in London, Manchester, Milton Keynes, Nottingham, Birmingham, Tyne and Wear,
  Wales and Leeds.

  We help these members to develop leaders, so they can participate in public life and hold
  politicians and other decision-makers to account on the issues that matter to them.

       @CitizensUK
       facebook.com/CitizensUK
       www.citizensuk.org

                                Registered Charity Number: 1107264
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