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Governing Body for Square Mile Strengthens Fair Pay for Staff and Suppliers

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A major increase in the number of workers entitled to the London Living Wage was agreed by the City of London Corporation today.

The governing body for the Square Mile will also encourage other firms to follow suit by promoting the Living Wage to City businesses through a new campaign which it will launch in November.

The City Corporation’s Policy and Resources Committee today decided to strengthen its own Living Wage policy by paying its own staff and its suppliers’ staff the new rate, with immediate effect, when the updated London Living Wage is announced in November each year. This is opposed to paying staff the new rate from April the following year, which is the most common approach taken by employers.

The organisation already ensures its own staff, apprentices and suppliers’ staff are paid in line with the Living Wage Foundation’s (LWF) accreditation terms and conditions.

And the City Corporation has now agreed that all contract workers delivering two or more hours work for the organisation will be paid at least the Living Wage – which in London is currently £10.20 per hour.

The move comes after the City Corporation found that staff contracted by suppliers could legally be hired for below London Living Wage levels under guidance from the LWF.

LWF guidance says that the London Living Wage should only be paid where suppliers employ contracted staff who work two or more hours in any given day in the week for eight or more consecutive weeks in a year.

The City Corporation has also committed to running a campaign in 2018/19 to encourage financial and professional services firms in the Square Mile to pay the London Living Wage. The campaign will highlight the commercial and societal benefits of paying the London Living Wage.

The Governing body will also look into sponsoring the LWF to help promote the Living Wage across the Square Mile and wider UK, encouraging more firms to adopt the Living Wage policy.

The decisions mean the City Corporation has committed to going above and beyond its obligations of being an accredited Living Wage employer to ensure all its workers get fair pay.

Catherine McGuinness, Policy Chairman of the City of London Corporation, said:

“We are proud to be a London Living Wage employer.  It has meant significant increases in wages for some of our lowest-paid staff.

“We have already taken steps to ensure that all of our regular suppliers, who are covered by the Living Wage Foundation’s guidance, are paying the Living Wage – and today’s announcement takes this one step further.

“We want to encourage all City firms to pay the Living Wage through leading by example, with our own responsible business practices, and by championing fair pay.

“The City of London Corporation is committed to making the Square Mile a fairer place to work and live.”

The City of London Corporation’s charitable funder, City Bridge Trust, was awarded the London Living Wage accreditation by the Living Wage Foundation in recognition of its implementation of the London Living Wage policy across its funding relationships with voluntary organisations.