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that of the employer. - Homeworkers Worldwide

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“If it had been left to me I’d never have been able to do it becauseI don’t know all <strong>the</strong> ins and outs. If <strong>the</strong>re was no NGH, I would stillhave complained to NMW Compliance Unit, but when <strong>the</strong>y droppedmy case <strong>that</strong> would have been <strong>the</strong> end. But in <strong>the</strong> end, none <strong>of</strong> thiswas useful for <strong>the</strong> deliverers who I originally complained for. Asworkers <strong>the</strong>mselves, <strong>the</strong>y were entitled to <strong>the</strong> minimum wage andholiday pay which I know <strong>the</strong>y still do not receive. We didn’t getanywhere with <strong>that</strong>.”Chapter 6: PayPay rates by method <strong>of</strong> payThe homeworkers were paid in a number <strong>of</strong> ways, and it is useful to lookat <strong>the</strong>ir pay rates in terms <strong>of</strong> <strong>the</strong>ir means <strong>of</strong> payment – paid by piecerate, timed worker, on commission, or paid by salary.As a timed worker (8%)On commission (9%)Salaried worker (16%)By output or piece rate (67%)It is important in particular to highlight <strong>the</strong> group <strong>of</strong> workers on piecerates, as <strong>the</strong>se were <strong>the</strong> largest group <strong>of</strong> homeworkers, on <strong>the</strong> lowestpay, and in our experience <strong>the</strong>y are <strong>of</strong>ten also <strong>the</strong> most vulnerable.Forty-four homeworkers, by far <strong>the</strong> largest group, were paid by piecerate. Twenty-eight <strong>of</strong> <strong>the</strong>se workers provided enough information about<strong>the</strong>ir pay and hours to estimate <strong>the</strong>ir hourly earnings. Of <strong>the</strong>se twentyeight,according to our calculations, nineteen were earning less than <strong>the</strong>NMW. Some were earning as little as £1 per hour. For <strong>the</strong>se twenty-eightas a whole, <strong>the</strong> average hourly rate was £4.41 – significantly below <strong>the</strong>current level <strong>of</strong> <strong>the</strong> NMW. (£5.35 per hour at time <strong>of</strong> survey, rising to£5.52 per hour in October 2007).Workers on piecerates, were <strong>the</strong>largest group <strong>of</strong>homeworkers,on <strong>the</strong> lowestpay, and in ourexperience <strong>the</strong>yare <strong>of</strong>ten also <strong>the</strong>most vulnerable.Five homeworkers received an hourly rate. Four <strong>of</strong> <strong>the</strong>se provided informationon <strong>the</strong>ir pay rates, and all were earning between £5.50 and £6.The average hourly earnings from our sample were £5.79.Six homeworkers were being paid on commission. It was possibleto estimate <strong>the</strong> hourly earnings for five <strong>of</strong> <strong>the</strong>se workers from <strong>the</strong>information <strong>the</strong>y provided, although payment by commission can <strong>of</strong>course vary dramatically across different pieces <strong>of</strong> work. These figuresneed to be treated with caution, but <strong>the</strong>y indicate average hourlyearnings <strong>of</strong> £13.03.Ten homeworkers were on a salary. These were <strong>the</strong> only homeworkerswho could <strong>the</strong>refore expect a guaranteed regular income. Three <strong>of</strong> <strong>the</strong>sedid not wish to disclose any information about <strong>the</strong>ir earnings, but sevenprovided enough information about <strong>the</strong>ir salary and <strong>the</strong>ir hours for <strong>the</strong>irhourly pay rates be calculated. Those who provided <strong>the</strong> information wereearning between £12k and £34k per annum, and <strong>the</strong> average hourlypay rate across this group <strong>of</strong> workers was £12.84.30 31

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