Canary Wharf Group has made history by becoming the first major property company to commit to paying the London Living Wage.
This means any worker taken on by the group, regardless of whether on a permanent or contractual basis, will receive a minimum hourly wage of £8.80 which is comfortably above the minimum wage threshold of £6.31 per hour.
Chairman and CEO of Canary Wharf Group, Sir George Iacobescu, expressed his pride at receiving the London Living Wage accreditation from the Living Wage Foundation.
He said; “We are tremendously proud to be the first major UK developer and construction company to have received this accreditation.
“The decision to pay a Living Wage underlines our appreciation of each and every member of staff and the communities around all our London developments from which many of our colleagues come.
“We’re proud to be taking the lead on this initiative in our industry.”
In London, the Living Wage is set slightly higher than in the rest of the UK due to a number of factors including the higher cost of living, lower car usage causing higher commuting fees and income distribution. It is set each year by the Greater London Authority and covers all boroughs in the Greater London area.
Although, at present, paying the Living Wage is an entirely voluntary initiative, there has been significant pressure put on businesses to sign up – largely due to the fact that wage growth recovery continues to lag behind inflation.
The Bank of England recently readjusted its forecast for annual wage growth to just 1.25 per cent, meaning that although economic recovery is now established, workers continue to see food prices, clothing costs and utility bills eat significantly into their monthly budgets.
The Canary Wharf Group, which last week announced that the value of its assets has risen to £6.3 billion, has been praised by both the London Mayor Boris Johnson and director of the Living Wage Foundation Rhys Moore.
Mr Moore welcomed Canary Wharf Group to the movement, pointing out that the “best employers” are now beginning to take notice of the Foundation’s work.
He continued; “This brings the Living Wage to a new sector and to some of the most iconic development sites in the capital such as Canary Wharf, 20 Fenchurch Street in the City and Shell Centre on the Southbank.
“We anticipate that the leadership this commitment has shown will encourage others in the development and construction industry to consider how they reward the lowest paid members of their workforce and help tackle in-work poverty in the UK.”
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