Mayor calls for London ‘Living Wage’
April 30th 2007 Speaking at City Hall in April, Livingstone said the campaign is not merely a political gesture but based on economic analysis.
Determined by the Living Wage Unit, the figure was calculated taking into account London’s housing costs, food bills and social integration. To live above the poverty line, the Unit reckoned £6.25 per hour as the bare minimum hourly rate of pay. When deciding upon the Living Wage it added a 15 per cent buffer to ensure workers stay above the poverty threshold.
The Unit estimates that 210,000 London workers in full time employment and around 165,00 working part time earn less than the new living wage.
“The London Living Wage is vital to ensure the capital retains a skilled committed workforce and this applies to those who provide all the essential services,” said Livingstone. “Without these workers London would grind to a halt. It owes as much to them as it does to highly paid brokers, bankers or lawyers.”
Livingstone said cleaners at City Hall have already been raised to the Living Wage, and that it will be phased in across Transport for London sites. The Olympic Delivery Authority has also confirmed its support. Some of London’s major financial institutions have also agreed to support the scheme.
Unions applauded the decision, with the T&GWU considering it another step towards better wages throughout the country. “It’s a bold move by the mayor,” said T&G regional secretary, Steve Hart. “It’s now about getting it in practice throughout the public and private sectors.”
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