The following letter has been sent to more than 500 contractors and suppliers of services for Camden Council, about the council’s decision to become Living Wage accredited. Camden is leading the way on this issue, having become one of the first London boroughs to not only pay its staff the London Living Wage, but to make this an integral part of the process of tendering contracts to external employers. For more information, visit www.camden.gov.uk/livingwage :
5 November 2012
Dear Camden Supplier
I’m writing to you about a change of policy at Camden Council that may affect you as a key provider of Camden services.
Camden Council believes that work should pay enough to cover a basic standard of living. Currently that is not always the case, and it isn’t the case for some of the companies that provide Camden services.
In July we changed our policy. In future we will expect providers to pay all their staff – and supply chain staff if they subcontract – a living wage. We will not be renegotiating existing contracts but will expect it to apply to re-lets of existing contracts and new contracts.
There are many benefits to employers in paying a living wage. These benefits reduce costs and increase profitability. They include:
• lower staff turnover, reducing recruitment and temporary cover costs
• improved productivity, raising the profitability of each staff member
• lower sickness absence, reducing cover and increasing productivity
• improving the workforce’s ability to adapt to new work practices.
For the employee, being able to afford to cover basic costs can have an immeasurable impact on people’s wellbeing. These include, reducing the stress of having to worry about money and reducing the need to work long hours or more than one job. These in turn can have a positive impact on the family life of the employee. And because a living wage puts more money in people’s pockets it can boost the economy and reduce benefit dependency too.
If you are already paying the living wage, we’d like to know because we would like to be able to credit our suppliers who are already responsible employers in this regard.
If you aren’t paying the living wage and believe it may be difficult for you to achieve, there is a lot of help and advice available. We understand it can be difficult having only recently ensured all our staff are paid a living wage.
If you want to know how it will affect you as a supplier of services to Camden Council please send your email to londonlivingwage@camden.gov.uk.
If you would like to find out more about becoming a living wage employer and to receive accreditation, please contact the Living Wage Foundation by visiting livingwage.org.uk
We realise these are challenging times economically, this is exactly the reason why we have changed our policy. We believe that there will be huge benefits to you as an employer and to Camden residents in the quality of the service they receive.
We want to pay a living wage, and want our suppliers to do the same because it’s the right thing to do.
Please do not hesitate to contact me or your contract manager if you have any questions.
Yours sincerely,
Leader of the Council, Cllr Sarah Hayward