Everyone who works for Wandsworth Council should be paid the London Living Wage (LLW), according to a report to be discussed by councillors.
The paper, written by Labour opposition councillor Andy Gibbons, claims the move would help increase social mobility and motivate workers.
The LLW is higher than the government-set minimum and living wages, because it is worked based on the cost of living in London, and It is currently £10.55 an hour.
All direct council employees are already paid the LLW, but Cllr Gibbons argues this should be extended to contractors too.
In the report he argues it would help increase staff retention and motivation, and points to research from the Living Wage Foundation and Cardiff Business School that shows it is “not only the right thing to do, but it also makes good business sense”.
Cllr Gibbons also claims the LLW would help stabilise the workforce in sectors like social care, which is vulnerable during periods of economic uncertainty – and with a potential labour shortage caused by Brexit.
Council leader Cllr Ravi Govindia has previously refused to do this, in a response to a question from Labour councillor Jo Rigby in July.
He said the council “should not have a policy of intervening in the external market”, and it should be for the contractors to work out what they need to pay their staff to meet the council’s “very clear expectations”.
Cllr Govindia also said that, because he did not have any data showing the contractors live within the borough, it falls outside the council’s sphere of interest – improving the quality of life of Wandsworth residents.
So far seven London boroughs are accredited by the London Living Wage Foundation to pay their contractors the London Living Wage .
The report will be discussed at the Finance and Corporate Resources Overview and Scrutiny Committee on November 22.
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