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28-Apr-08 11:30 [Pay and Reward]
Local minimum wage threat The London Living Wage, established by Ken Livingstone in 2005, could contravene European Union (EU) law, it has been claimed.
Under the scheme, contractors that carry out work on Greater London Authority projects are required to pay staff a minimum wage of £7.20.
However, a ruling earlier this month by the EU determined that a regional authority can not demand that workers from EU states outside the country be paid more than the national minimum wage, according to the Independent.
In response, the Fair Pay Network is now calling on the government to safeguard against companies bringing in workers from the EU and sidestepping the wage.
"This is profoundly undemocratic. These are regional authorities responding to local concerns. On paper this is a definite threat and we will be seeking government action safeguard against it," the paper quoted it as saying.
Fairer pay for all workers is part of the network's mission, as well as bringing to the spotlight any social injustice regarding levels of pay.
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