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The London living wage: Numbers and money


Photographs of office cleaners
 
The London living wage: Numbers and money

This table shows estimates of the numbers covered and the wages gained in the London living wage campaign 2001–2008.

Sector/workplaces Date Numbers (est) Total gained
Hospitals
Homerton, Mile End, Royal London*, Whipps Cross
Phased in by 2006 1000 2006: £3,088 million
2007: £3,145 million
2008: £3,220 million
Canary Wharf/City
Barclays, HSBC, Deutsche Bank, Morgan Stanley, Lehman Bros, PWC, KPMG, Macquarie and others
2005 onwards - rolling 1700 (approx. 3000 cleaners in total but estimate 800 covered at C.Wharf and 900 in City) 2005: not calcuated but all workers included for 2006-8
2006: £2.705 million
2007: £2,673 million
2008: £2,737 million
Finance
Barclays (London wide)
mid-2007 1000 2007: 6 months only
£1,572 million
2008: £3,220 million
Higher Education
QMUL and LSE
SOAS from Sept 2008
2007 (phase in to 2009 at LSE) 250 (QM and LSE)
50 (SOAS)
2007: 6 months only to reflect QM and LSE phase-in
£163,800
2008: QM and LSE
£335,400
2008: 4 months SOAS £22,360
Third sector
IPPR, CPAG, Big Issue, UnLtd, ACEVO
2005 onwards estimate 50 2006: £66,300
2007: £65,520
2008: £67,080
Olympics 2007 onwards ** 3000 workers on site (2008) most not in relevant jobs
GLA family
City Hall, LDA, LFPEA, Police, TfL
2006 onwards
2008

100

800

2006: £132,600
2007: £262,080
2008: £1,207 million
Retail
Westfield Shopping Centre
2008 ** Info pending
Dept for Children, Families and Schools April 2009 ** Info pending
Total   4,950** £24,326,740

Notes:
*The Royal London is included here even though the staff were taken back in-house as part of a PFI deal. This happened after negotiations for a living wage to be paid to cleaners on site.
** The living wage will only reach significant numbers on the Olympics site, Westfield and the DCFS during 2009. The GLA family has introduced living wages as re-contracting has allowed. The largest being the Facilities Management Services contract with the Metropolitan Police Service covering 800 cleaners by 2008 (GLA 2008). Ealing Council has agreed to implement a living wage for their dinner staff but this is being introduced gradually and will be recorded once they reach a living wage. Talks with the Hilton Group (17 hotels) are ongoing, small increases have been made in pay and cuts have been made in the number of agencies used.
New agreements have been made at Birkbeck College, London and with a number of Local Authorities (Ealing, Lewisham and Tower Hamlets Councils). These decisions will yield results during 2009 and the table needs to be updated to include them when information is available.

Source: Authors’ calculations

Note about the calculations
These figures are calculated using the difference between the NMW and LLW except for those working in Canary Wharf and the City as research suggests that these workers were already paid about £1 more than the LLW and half the difference has been used for this group.


The differences between the annual rates of the NMW and the LLW are shown in the table below:

  NMW* LLW** Difference Half Difference LLW w/o benefits
2003
4.50 6.40 1.90 0.95  
2004
4.85 6.50 1.65 0.83  
2005
5.05 6.70 1.65 0.83 8.10
2006
5.35 7.05 1.70 0.85 9.00
2007
5.52 7.20 1.68 0.84 9.15
2008
5.73 7.45 1.72 0.86 9.60
2009
5.80 7.60 1.80 0.90 9.85

* set by the Government funded Low Pay Commission (http://www.lowpay.gov.uk)
** calcuated by the GLA from 2005 (http://www.london.gov.uk/mayor/economic_unit/workstreams/living-wage.jsp)

Workers are assumed to work 36 hours a week for 52 weeks a year: 1872 hours a year (although many do work long hours of overtime which are not included here). The workers at Queen Mary, SOAS and the LSE, those in the Third Sector, and those in the GLA family are assumed to work 15 hours a week as the vast majority are part-time: 780 hours a year.
The difference between the NMW and the LLW is applied to each hour worked for each worker for the years when the improvement in pay was agreed.

 

 
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by Edward Oliver. © Queen Mary, University of London 2007
Department of Geography, Queen Mary, University of London, Mile End Road, London E1 4NS, Tel: +44 (0)20 7882 8200, Fax: +44 (0)20 8981 6276