A trailblazing contract raising workers above poverty wages takes effect this week, prompting celebrations by the Green councillors who campaigned for it.
From 1 March grounds maintenance workers in Lewisham’s parks will be paid at least £7.60 an hour, lifting them out of the poverty pay trap.
It represents the first step in a fundamental shake-up of pay levels for those providing outsourced council services.
Lewisham Green Party councillors had waged a near two-year campaign for the fair-pay guarantee, beginning with a May 2008 motion which won cross-party support.
It called for companies providing out-sourced council services to pay employees at least the London Living Wage – higher than the national minimum wage, which is too low to make ends meet in the capital.
The resulting policy is unprecedented in London. It means companies competing for contracts are asked to provide two bids, with one priced to include fair pay for employees. The council can then, if it is prepared to fund the cost, choose the higher-cost, fair-pay deal.
Workers employed directly by the council already receive at least the London Living Wage, but contract workers have enjoyed no such guarantee.
Green Party Group leader Cllr Darren Johnson said:
"From now on when you are enjoying one of Lewisham’s parks, you will know those working to maintain it for you are not paid poverty wages.
"Greens began this fight for fair pay almost two years ago. Now historically low-paid workers and their families will finally see the result in their pay slips.
"The current minimum to get by in London is £7.60 an hour, so this contract is a blow against the working poverty trap too many families find themselves in.
"This is a milestone, not an end to our campaign. We want the same fair deal for the caterers, cleaners and carers the council and community depend upon, and we will fight on for that investment."
The London Living Wage is the amount calculated by the GLA’s Low Pay Unit as the minimum needed to escape poverty in London, and is periodically updated to reflect changing costs of living.
The unique fair-pay contract for grounds maintenance across the borough, awarded to Glendale, begins on 1 March and will last for 10 years.
As contracts for other outsourced services expire and have to be retendered, other low-paid workers will benefit from a living wage if the council decides to put the money in, meaning the grounds maintenance pay deal should not be a one-off.
The Green Party Group said council officers should be commended for working hard to make the policy work.
They added that they wanted to see the policy extended to the council’s local public sector partners such as Lewisham Hospital.