(PR in) HR Pulse | HR News Round-up: 20th – 26th March 2023

Photo by Melpo Tsiliaki on Unsplash

Ikea and McDonald's vow to reform sexual harassment policies with EHRC

Following the inappropriate handling of a recent sexual assault and harassment allegation, Ikea UK has agreed to improve its sexual harassment policies and practices with the Equality and Human Rights Commission (EHRC). 

This means that Ikea UK will have to review its policies and practices with an external lawyer and commit to a zero-tolerance approach to sexual harassment for all employees. 

HR and line managers will also be re-trained to ensure the agreement is upheld.

The agreement will make sure that the retail giant meets its obligations under the Equality Act 2010 until August 2025.

A similar agreement was also made between the EHRC and McDonald’s UK six weeks prior. Sources: HR Magazine, Personnel Today & The Guardian.

The cost of living has pushed workers into poverty

The Department for Work and Pensions recently published its ‘Households below average income: for financial years ending 1995 to 2022’ which revealed that an astounding 1.5 million people had been added to the number of employees living below the poverty line.

This is arguably unsurprising as February saw inflation rise to 10.4%, according to the Consumer Prices Index (CPI).

The Trades Union Congress (TUC)’s General Secretary, Paul Nowak, claims that the government has exacerbated the situation by continuing to deny workers fair pay and instead allowing the rich to collect bonuses and get tax breaks. Sources: HR Magazine & Personnel Today.

Single mothers are short changed £852 million in pension savings

NOW: Pensions and the Pensions Policy Institute’s research reveals that one in three single mothers aren’t eligible for a pension under the current auto-enrolment criteria, missing out on c£852 million in pension contributions. 

This is partly due to women taking on part-time contracts as a way of balancing work with their care responsibilities. In fact, more than half (54%) of single mothers account for all of the UK’s part-time workforce. 

NOW: Pensions states that only around a third (27%) of women stay in full-time employment during their entire career, in comparison to almost half (45%) of men. On average, women take a c10 years career gap to address their caring obligations and responsibilities, often losing out on higher salaries and opportunities.

The Pensions and Lifetime Savings Association also explains that single mothers who are eligible for a workplace pension still aren’t saving enough money for retirement. 

Currently, a minimum lifestyle in retirement costs c£12,800 a year but single mothers have access to an average of c£48,000 in total, which only accounts for 3.75 years.

Head of PR and Campaigns at NOW: Pensions, Samantha Gould, urges employers to remember the challenges single mothers face and to ensure that they aren’t penalised for their family obligations and responsibilities. 

She adds that entering part-time workers into a pension scheme is instrumental when considering their financial wellbeing.

Since January 2022, there have been many campaigns urging parliament to revise and expand the auto-enrolment criteria to reduce the age limit from 22 to 18, and remove the minimum earning requirements which currently stands at £10,000 annually.

On the 24th May MP Jonathan Gullis’ Private Members' Bill will be read for the third time. Sources: HR Magazine & Personnel Today. 

NHS Scotland and Scottish nurses and midwives agree on an additional 6.5% pay rise

The Royal College of Nursing (RCN) and the Royal College of Midwives (RCM) in Scotland have accepted NHS Scotland’s offer of a 6.5% pay rise - equal to a minimum of £1,548 and a maximum of £3,755 - set to start on the 1st April 2023. 

This is in addition to a one-off non-consolidated payment between £387 and £939, along with the previous 7.5% 2022-23 pay increase.

The agreement includes a plan to reduce the work week to 36 hours with no implications on pay, and continued paid overtime for senior midwives.

In England, a 5% pay deal was offered, however, the unions advised NHS workers to reject the offer and continue to push for more. Sources: Employee Benefits & Personnel Today.