Highlighting Where our Higher Education Institutions Fail to Pay the Minimum Wage

Highlighting Where our Higher Education Institutions Fail to Pay the Minimum Wage

 

Background to the National Minimum Wage

The national minimum wage (NMW) came into effect in the UK on the 1st April 1999. At long last this law meant that workers in this country could expect to be paid at the very least a minimum hourly figure for their hours spent in employment – or so it seemed. The NMW was introduced at two different levels; for those aged 18 – 21 the NMW was £3.00 per hour; and for those aged 22+ the NMW was £3.60 per hour.

The youth rate for 18-21 year olds was increased on the 1st June 2000 from £3.00 to £3.20 an hour, and the adult rate for those aged 22+ was increased to £3.70. The adult rate is set to change further in October 2001 to £4.10 and then to £4.20 in October 2002.

An employer that is not paying its employees the NMW is committing a criminal offence. The enforcement agency for the NMW is the Inland Revenue who can fine employers £7.20 per worker per day for those that have not been paid the NMW, and on top of this £5,000 per employee who has not been paid the NMW (including past employees).

 

Higher Education and the National Minimum Wage

At some of Britain’s top higher education institutions the NMW is still not being paid to employees two years later. At Leeds Metropolitan University those staff living and working in halls of residence have only recently been paid the NMW for the work that they do. These staff members make up the Residential Officer team, who had to wait over two years to be paid the NMW after the regulations were introduced.

The NMW regulations also stipulate that workers living in accommodation provided by their employer cannot pay more than 50p per hour worked for their accommodation - up to a maximum of £19.55 per week. Again Residential Officer team members were overcharged for their accommodation, alarmingly this is not only the case at Leeds Metropolitan University. The results of a Unison email sent to numerous HE institutions nationwide showed that Resident Tutors at the University of Portsmouth were being vastly overcharged for their accommodation, and that Residential Deans at the University of Essex were working for no salary whatsoever.

There seems to be a basic misunderstanding of what effects the NMW has amongst management at higher education institutions where staff have to live and work in halls of residence, and the severe consequences that employers who do not follow NMW guidelines can face. The table below gives examples of three UK HE institutions and how they did not meet up with NMW requirements.

Higher Education Institution

Name of ‘Live in’ Halls of Residence Employees

Charge for Accommodation

Salary

Working Hours

Holiday Entitlement

Leeds Metropolitan University

Residential Officer Team Members (ROTM) includes Assistant Residential Officers (AROs), Residential Officers (ROs), and Senior Residential Officers (SROs)

RO / SRO - £81.77 per month

ARO – Free (£4 per week if employed elsewhere in the university as well)

SRO – £4295.51 PA

RO – £2315.21 PA

ARO - £0 PA

SRO / RO / ARO - All scales 11 week nights per month + two weekends.

A week night shift is Sunday - Thursday at 7 hours per shift plus a 30 minute unpaid break.

Weekends (Friday night, Saturday all day and night, and Sunday day) at 30 hours per weekend plus 4 hours unpaid breaks.

None

University of Portsmouth

Resident Tutors

£140 per month

£4000 PA

Unknown

None

University of Essex

Residential Deans

£0

£0

Unknown

Unknown

 

Using Leeds Metropolitan University as a primary example of how much management actually misunderstood the NMW regulations it can be seen that not only were staff being overcharged for accommodation – they were also being vastly underpaid for the long hours that they work in halls of residence.

The Residential Officer position is one that is not taken lightly by those in the Residential Officer team. At one halls of residence alone, student residents over the last two years have been involved in cases of attempted suicides, self harm, drink and drugs overdoses, assaults, muggings, rapes, burglaries, countless false fire alarms, and several actual fires in student flats.

The Residential Officer team members need to be versatile in their approach to the position, they combine counselling and welfare skills, with a need to maintain discipline on behalf of the student’s landlord – their employer Leeds Metropolitan University. Residential Officer team members are regularly called upon to counsel students who may be suffering from depression, anxiety and countless other adolescent mental health issues. They serve as arbitrators at inter-tenant disputes, and are in charge of student discipline within the halls of residence.

Listening to Residential Officer team members recall incidents that have occurred in one halls of residence alone is enough to put most people off of doing the job forever. Residential Officer team members have been physically attacked – one team member having his nose broken, they are constantly swore at, and have been spat upon by an increasingly aggressive student population. No other university staff are treated in this way, and if they were there would be an uproar.

So why did Residential Officer team members not get the minimum wage? The legal argument is complex, but it seems to be centred around the fact that Residential Officer team members use the flats that they live in as their work places. There has not yet been a NMW legal case where this is the argument, and the present dispute between Unison backed Residential Officer team members and Leeds Metropolitan University may set a precedent in the UK to cover such cases.

Section 15 from ‘Statutory Instruments 1999 No. 584 - The National Minimum Wage Regulations 1999’ states the following:

‘In addition to time when a worker is working, time work includes time when a worker is available at or near a place of work, other than his home, for the purpose of doing time work and is required to be available for such work except that, in relation to a worker who by arrangement sleeps at or near a place of work, time during the hours he is permitted to sleep shall only be treated as being time work when the worker is awake for the purpose of working.’

The above NMW regulations state that workers who are ready and available for work, but at home are not required to be paid the NMW for the time they spend at the ready at home, however the Residential Officer team situation is peculiar and one where their flat / room becomes their workplace when they are on duty.

It was successfully argued by Residential Officer team members that their flats are to be treated as places of work when they are on duty, and that they should be paid the NMW for the hours spent on duty in and around their flats.

Residential Officer team members were required by their contracts to be in residence and on duty five nights per week. This duty time was arranged into duty rotas so on average they worked five full nights over two weeks and 48 hours over every other weekend. They were available for work any time within these periods. They concede that as according to the NMW regulations that they should not be paid for time spent sleeping, but that their flats / rooms are to be treated as places of work for the purposes of the act.

Curbs placed upon a Residential Officer team member to be on site during his duty days were such that he was at work the entire night. When on duty a Residential Officer team member does not leave site as stipulated by the university management. He is at the ready to deal with fire alarms at a moments notice - they even arrange clothes next to their beds in case of such emergencies. Senior Residential Officers and Residential Officers have fire alarm repeaters in their flats - once again enforcing the formality of the workplace into their residences. Residential Officers do not drink when on duty - once again indicating that their time is not their own, but their employers, for example during quiet periods time is spent at home listening for noise, and when it is heard it has to be dealt with, such is their remit.

To support their argument that their flats are to be treated as places of work when on duty Residential Officer team members stated the following:

 

A UNISON Success Story at LMU

The Unison backed Residential Officer team members used the above points to successfully illustrate that the formality of the workplace was imposed on their residences within their duty hours.

Their argument that they were time workers and should be paid for all time when they were not sleeping is that they themselves conformed to university regulations for living in halls i.e. they are the visible face of the university within halls (at any time of day) and set the standards as to how tenants should behave e.g. they do not play ball games on site. In essence they have a high profile, and a high-pressure job. If they are in contact with students they are at work – this is the responsibility that they have.

Residential Officers at Leeds Metropolitan University struck a settlement with LMU management in September 2001. This settlement ensured that all Residential Officer team members were back paid for the work that they had done, payments ranged from £2,500 - £10,500 for the 21 members of the Residential Officer team. As part of this settlement the following entitlements were also granted:

· Sick pay.
· Holiday pay.
· Improved working hours.
· Realistic APT&C pay scales reflecting the seniority of their positions.
· Email and internet access for staff at each site.

Victory - Jubilant Residential Officers and Unison Branch Secretary Brian Bolton celebrate with their back-pay

 

Other Higher Education Institutions

It is well known that other HE institutions across the UK were watching developments at LMU very carefully. This case case certainly has ramifications for the entire HE sector where staff live and work in residences. The failings of management at other HE institutions to observe NMW law could result in large fines, it is a hope of UNISON at LMU that this case will lead to workers living and working in residences at other HE institutions being treated as fairly as their co-workers.

If you would like further information about this case please email LMU UNISON Branch Secretary Brian Bolton on b.bolton@lmu.ac.uk.

How we did it - UNISON Focus article.