Camden Council – ‘Morally important’ plan to raise wages of low-paid

Published: 03 June 2010
by RICHARD OSLEY

TOWN Hall finance chiefs will defy gloomy economic warnings and move to raise the pay of the lowest earners who deliver council services.

The new Labour cabinet in charge of Camden want to end a “blind eye” culture of ignoring what companies hired by the council pay their staff by demanding they give a higher basic rate.

Senior councillors will argue that contracts should not be awarded unless there is a guarantee that staff will get at least enough money “to put food on the table”.

It could mean an improved deal for hundreds of cleaners, catering staff and security guards in Camden.

Lewisham Council has already introduced the policy which means everybody working for it directly – or indirectly through a hired contractor – is paid a “London Living Wage” of £7.60 per an hour.

The New Journal understands there is resistance from finance department officials who fear that installing the same rules in Camden will make it harder to balance the books in already difficult economic conditions.

But the new top table of councillors have privately resolved that they will not let themselves be shouted down on an issue they believe is of “moral importance”.

The commitment to the idea, which has already been discussed at high-level meetings at the Town Hall, was revealed on Friday morning when councillors from Camden spoke alongside Labour Party leadership contender Ed Miliband at a fair pay discussion at the London School for Economics (LSE).

Finance boss Councillor Theo Blackwell and new Kilburn councillor Mike Katz spoke in favour of making the change as soon as possible, arguing it would increase job satisfaction and, with it, efficiency.

“There is one contract we have seen in Camden where a company  makes £400,000 extra a year because it does not pay this living wage,” Cllr Blackwell told the 100 people inside the Quad building at the LSE’s Holborn campus for the event organised by campaign group London Citizens.

“I’ve just come from a meeting where we have been pushing for this. We have a moral duty to do this.”

The gulf between the highest paid at the council – chief executive Moira Gibb can qualify for a pay package of more than £200,000 a year – and low-paid cleaners was a bone of contention during Labour’s four years in opposition in Camden.

Several institutions that receive public funds have already made the switch, including the LSE itself – where cleaners receive the improved deal and managers say productivity has increased as a result.

Councillor Josh Peck, deputy leader of Tower Hamlets Council, said: “We were told it would cost £1million to introduce it. When we looked at it seriously, the cost was closer to £200,000.”

Mr Miliband said he would raise the importance of a fair wage at every stop on his campaign to become the Leader of the Opposition at the House of Commons.

“Big companies who can afford to pay this basic level of wage, should pay,” he said. “This isn’t going to be something that changes overnight. It will be a long campaign but it is something that speaks to the heart of Labour values and that we must move forward with.”

George Binette, branch secretary of the Unison trade union, said he welcomed the interest in a wage restructuring at the Town Hall.

But he added: “We would want to see it introduced for new contracts this year – and not being paid at the expense of people’s jobs or having the number of hours on a shift being cut back. 

“This is the right direction but we will be looking to meet the Labour group to see the detail of their plans.”