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Businesses commended for commitment to London living wage

Published 20th December, 2010 by Neil Nixon

Businesses commended for commitment to London living wage

The London living wage campaign reached a major milestone recently as it was announced that over 100 firms have now committed to paying their staff a wage which helps ensure an acceptable standard of living in the capital. Bank of America and Merrill Lynch were among 17 new employers who have signed up to pay their staff a rate of £7.85, which has been created to help provide Londoners with a socially acceptable standard of living. The move will see an extra 2500 workers lifted out of the lowest pay bracket.

According to calculations from the office of the Mayor of London, the wage could help 25% of the 630,000 children currently living in poverty if it were paid to every worker in the capital.

Mark Woodhead, chairman of the British Cleaning Council, said: "It is only right that all workers are rewarded with a wage that will help keep them out of poverty. Cleaners have been one of the greatest beneficiaries of the London living wage, and the British Cleaning Council commends the 100 companies that have pledged their support to this policy and hopes that this will encourage others to follow their lead."

Andrew Large, chief executive of the Cleaning and Support Services Association, said: "Studies have found that paying the living wage results in higher levels of motivation, loyalty and productivity amongst workers. While there is a strong argument that the London living wage is right from a moral standpoint, it more than pays for itself economically. In an era of budget cuts and extreme pressure on cleaning contractors to cut costs, it is doubly commendable that so many new organisations are ensuring that it is not the lowest paid workers who will suffer during the difficult times ahead.”

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