Is Rochdale being promoted as a low wage economy?

Roger Ellis

The question was asked of Rochdale Borough Council Executive Andy Zuntz, representing the Kingsway Partnership*, by BBC Manchester’s Alan Beswick.

The question arose from papers sent to prospective purchasers detailing how they can lower their operating costs by paying lower wages if they chose to relocate to the Kingsway Business Park.

Mr Zuntz denied there was any intent to promote low wages in the Borough.

Roger Ellis, Chief Executive of Rochdale Borough Council said: “Kingsway’s main aim is to create jobs for local people – and at the same time give our residents the opportunity to develop new skills and contribute to an improved local economy for future generations. Unemployment here is currently higher than in other parts of the region, and we firmly believe that local people would rather have the option of a job paying a reasonable salary - comparative with other local companies - with prospects for that salary to increase above the national average, than no job at all.

“It’s not for us to set salary levels in the private sector, but it is standard practice for us to explain to potential investors who are looking to relocate what the average salaries are for certain types of employment.

“If companies offer higher salaries than the market average this can lead to workers from outside of the area - who are already skilled in a particular discipline - simply moving from company to company. Jobs created at the market rate would make it more likely that local people were taken on and upskilled.”

Leader of the Labour Group on the Council, Councillor Colin Lambert has been unequivocal in his condemnation calling it “a disgraceful act of betrayal”. Councillor Lambert said: “This is a disgraceful act of betrayal by the Lib Dem Council and it appears senior officers of the Council and Rochdale Development Agency. It appears a major deceit has been played out behind closed doors, which will cause more and continued hardship for hard working families and young people across the borough.

"During this time of an economic downturn our families need the council to be actively supporting our residents gaining employment at a decent wage and not one set below a level employers are agreed upon.

"This revelation is a major blow to young people and families facing difficult employment times, the revelation indicates this low wage expectation is being fuel by the opinion of those very people who are paid to improve the skills and employment levels in the borough.

"Rochdale Development Agency should be renamed Rochdale Poverty Agency, what next will they be promoting more charity shops in our town centres?”

In an interview with Rochdale Online, Rochdale Development Agency Chief Executive John Hudson agreed the wording of an internal document was “overzealous” but said that taken in context the motive - to attract a potential significant employer to Kingsway - was a good one. Mr Hudson said: “Kingsway is a very attractive offer for businesses looking to relocate or open new facilities. We’ve spent the last few years preparing the site, which is equivalent to 180 football pitches, and getting the infrastructure right with major investment in creating a road network and direct link to the motorway junction. We have businesses based on the park with plots ready for occupation. The team have already provided free training and recruitment support to thousands of local people, and offer a completely free recruitment service to businesses interested in moving in.

“Kingsway represents great value for money, but whilst the cost of living in Rochdale is lower than some other parts of the country right now, we expect the economy here will grow as regeneration projects are completed. We’re conveniently located for both Manchester city centre and the beautiful Pennine countryside, with great transport links to both the North West and Yorkshire.

“Despite the recession, we have a good number of businesses interested in Kingsway and will be making an announcement about our next big signing soon.”

* The Kingsway Partnership consists of Rochdale Borough Council, Rochdale Development Agency, North West Regional Development Agency and Wilson Bowden.