Low paid workers have always been at the heart of the Living Wage movement. The campaign began in East London, where outsourced cleaners working in city offices and banks were juggling multiple minimum wage jobs just to survive. Over 475,000 workers are now paid a real Living Wage, giving them a decent standard of living to help them thrive.
But too often, essential workers on outsourced contracts are left out of workplace benefits like decent pensions and secure, reliable hours. This means they do not have long-term financial security and cannot plan their lives properly.
By extending Living Hours and Living Pension to outsourced workers, businesses can ensure that everyone who contributes to their success can live with dignity and respect both now and in the future.
Outsourced workers bear the brunt of insecure work
Cleaners and security guards - who are more likely to be from minority ethnic backgrounds - are twice as likely to be on zero hours contracts as other workers.
Nearly half of minority ethnic workers receive less than a week's notice of shifts.
Workers in insecure work being more than twice as likely to say that work makes them feel ‘miserable’ than those with secure hours
Today's cost of living crisis is creating tomorrow's pension crisis
95% of low paid workers in DC* pensions are not saving enough for a decent standard of living in retirement.
Over half of people on a low pension struggle to keep up with bills whilst 1 in 4 say their income is negatively affecting their levels of anxiety and the quality of their sleep.
Why it's important to extend Living Hours & Living Pension to third party workers
Many essential services in offices and shops, such as cleaning, catering and security, are delivered by workers employed by facilities management companies who are contracted by the business. This means they are not employed directly by the company they are working for, and so they will not have the same pay and benefits as direct employees.
Living Wage employers already work with their suppliers to pay these workers the real Living Wage. By extending Living Hours and Living Pension to these workers, we can ensure they have secure hours and decent pension savings too.
Implementing Living Hours with suppliers
Employers take 5 key actions to roll out Living Hours to regular third-party contracted staff:
- At the point of accreditation, share the names of your cleaning, catering and security contractors and the date their contracts are next up for renewal.
- Work with the Living Wage Foundation on a rollout plan.
- Include the Living Hours clause in new supplier contracts.
- Bring at least one supplier contract onto Living Hours in the first three years of accreditation.
- Gradually roll out Living Hours to other suppliers - eventually implementing throughout your entire supply chain.
Full details can be found in the case study and supporting resources.
Implementing Living Pension with suppliers
Employers work with in scope suppliers and take 5 key actions to roll out Living Pension to staff working on an accredited contract:
- Review the tender process to cost the contributions and build into contracts
- Supplier work with pension provider to set up a Living Pension section
- Supplier creates new section on their payroll system
- Communicate changes to relevant workers
- Pay increased contributions into relevant workers pensions
Full details can be found in the case study and supporting resources.
