Tim Martin defends not paying Wetherspoon’s staff Real Living Wage in response to Owen Jones comments The pub chairman has responded to an interview with Owen Jones

Wetherspoon’s boss Tim Martin has defended staff wages after journalist Owen Jones accused the pub chain of paying its workers “poverty wages” in an interview.

‘It’s time Tim Martin paid his workers the actual living wage, institute decent terms and conditions, and both talk to and recognise his workers’ trade union’ Owen Jones The i newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription.

Mr Martin said Wetherspoon’s employees in every age bracket are paid more than the minimum wage set by the Government, and claimed staff also receive a generous bonus scheme and share allocation.

He said £40m – half of the company’s profits – was divided between 37,000 staff in 2018. Employees who have worked for the group for 18 months or more also benefit from a share scheme.

In an uncomfortable interview, Mr Martin Mr Jones’ comments “childish” and “rude” after The Guardian columnist questioned why Wetherspoon’s employees aren’t paid living wages.

‘Most sensible’ option

The Living Wage Foundation, an independent body, argues that UK workers should be paid £9 an hour outside London, and £10.55 within the M25. The organisation says its proposed “Real Living Wage”, which differs from the minimum wage (confusingly, sometimes referred to as the “National Living Wage”) set by the Government, better reflects the cost of living today.

Mr Martin indicated he was not aware Mr Jones had been talking about anything other than official minimum wages set nationally. He said: “If Owen was referring to another definition of the National Living Wage, I wasn’t aware of it.”

The Wetherspoon’s chairman told i: “The main issue is that there are too many masters in this area, offering different opinions on wage levels.

“The coalition government approach, which appointed a commission to set wages at a level which would not increase unemployment, seemed the most sensible.

“If the minimum rate/living wage is set too high, it may not increase unemployment in Notting Hill, but it may well do so in the valleys of South Wales, for example.”

Above minimum wage pay

Martin added in an email: “I also think profit share arrangements can work well, as they have for us. If the minimum rate/living wage is set too high, it may not increase unemployment in Notting Hill, but it may well do so in the valleys of South Wales, for example.

“Twenty five per cent of pubs have shut down since 2001, probably the tax and cost burden has been too high – particularly in less affluent areas.”

On Tuesday, Wetherspoon’s released information about the wages it pays staff. The company pays staff aged 25 and over a starting rate of £8.26 per hour. The current National Living Wage for this age group is £7.83, which will increase to £8.21 from April 2019.

Spoons pay (Photo: Wetherspoon’s)

Real Living Wage

Mr Martin was responding to an interview with Mr Jones held last month at The Last Post, a Wetherspoon’s pub in Southend, Essex. Martin recently embarked on a UK speaking tour in order to champion Brexit at more than 100 branches.

During the interview, Mr Jones said to Mr Martin that many of his workers “are on poverty wages”. In December, the Joseph Rowntree Foundation (JRF) said there are now about four million employed people in poverty in the UK. The number of people classified as “working poor” is climbing. Wages are low.

The journalist told i: “Tim Martin really needs to learn the difference between the minimum wage, which isn’t a living wage however it’s branded, and the actual living wage, set by the independent Living Wage Foundation, which is £10.55 in London and £9 across the country.

“He didn’t even know how much he paid his own workers when I asked him, and as I told him, many of his workers are paid below the actual living wage, which is calculated on the basis of what people need to live.”

Spoons strikes

Jones continued: “We live in a country where most people in poverty are in work, earning their poverty, and where we have to spend billions of pounds on in-work benefits so people can get by.

“It’s time Tim Martin paid his workers the actual living wage, institute decent terms and conditions, and both talk to and recognise his workers’ trade union.”

Brighton student Alex McIntrye, who took part in the first ever Wetherspoon’s strike action in October last year, said he and many others are “a paycheck away from destitution”.

Spoons Strike protesters joined hospitality colleagues from McDonald’s and TGI Fridays calling for living wages to be introduced.

A Spoons Strike statement sent to i on Tuesday said: “The Real Living Wage is a rate set by living costs.

Hospitality industry

“It means people have enough money to pay their rent, food, bills and get by with the minimum dignity they deserve.

“Unless you have their accreditation, you really shouldn’t brag about how much you pay your staff, and you certainly are in no position to refute claims of poverty pay.

“Hospitality can be gruelling, antisocial, thankless work. Equip this with poverty wages and its no wonder turnover in the industry is so high.

“This is also why you must understand the free shares scheme means little to us.”

Staff have to have worked for the company for 18 months to quality for free shares.

This article was updated on 13 February to include a statistic from the Joseph Rowntree Foundation.