Friday, December 26, 2008

Living Wage for London – a huge step forward at last

I first picked this up from Peter Kenyon post about the early Christmas pressie for many Tower Hamlet Council workers and contractors.

The Council had just passed a motion calling for the London Living wage to be implemented not only for all directly employed workers but also for all contractoring staff. It also calls for Best Value contracts to apply a London living wage when they are up for renewal. The current Living wage level is £7.45 per hour (minimum wage is only £5.73 for over 22 year olds).

The Council free newspaper East End Life covers it here . There are some woolly bits in the motion that are a little worrying about “encouraging” contractors to adopt a living wage.

But I am really pleased. This is potentially a huge advance. I went into a Tower Hamlets “Idea Store” (merged library and life long learning centres) and spoke to some people I know. There are agency staff on only £6ph so this will make a huge difference to people’s pay. I know that the Council ALMO Housing agency caretakers are only paid NMW as well. I have posted here and here on this issue in the past. In the past, when I was a member of the local UNISON branch I have also attended a number of meetings with various Tower Hamlets Council leaders on this issue. We were always listened to sympathetically but were always told that it was not legally possible to implement a London Living wage.

The really interesting thing is whether or not similar motions will be passed in the other London boroughs and how effective they are in “encouraging” other employers to pay the same. I have recently asked my employer to carry out an audit about how many workers receive less than £7.45 (mostly office cleaning and security contractors).

I know of some housing organisations that have lost Local authority Supporting People contracts by being undercut by those who pay just above the NMW.

It was good to see that there was cross party support for this in Tower Hamlets, but I seriously doubt anything will happen in Tory boroughs. Peter Kenyon sees this as a return to basic Labour values.

Well done to the new Labour Council Leader Lutfur Rahman (seen in photo with successful candidate Rachel Saunders at the Mile End East By-election).

2 comments:

Charlie Marks said...

This is indeed good news. Though some in Labour have voiced concerns that a London Living Wage would be a distortion, it's good to see that the policy is being picked up by Labour councils.

John Gray said...

Hi Charlie

Clear red water. Them and us.