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12-May-08 11:30 [Pay and Reward]
City council to raise minimum wage Campaigners in Oxford have won their campaign for an increase in the minimum wage, after the city council agreed to pay its employees at least £7 an hour.
The battle was instigated by Labour city councillor Joe McManners, who suggested that the minimum wage of £5.52 was too low for people living in Oxford, which has the third highest house prices in the country, according to a Nationwide Building Society survey.
Now the council has agreed the £1.48 an hour increase, which will come into effect from April next year.
Mr McManners said that the move would also benefit businesses as well as staff.
"This isn't just going to benefit workers. There's some good evidence employers who pay a living wage notice an increase in productivity and a decrease in the amount of sick leave," he said.
It is now hoped that other public sector bodies and businesses will follow the example set by the council.
House prices in Oxford have exceeded the growth in earnings, according to Mouseprice.com.
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