Battle over the Living Wage hits waste management business

A battle over the payment of the ‘real’ Living Wage has led to pressure being put on Sheffield City Council to hold waste management firm Veolia to account with its pay deals.

The Living Wage was introduced as the government attempted to move to a “higher wage, lower tax, lower welfare society” at £7.20 per hour for workers over the age of 25. But the Living Wage Foundation which calculates the figures has said the “real” living wage comes in at £8.45, though this remains a voluntary wage rate.

But union GMB, which represents Sheffield refuse workers, say that not enough is being done by the South Yorkshire council to force its major contractor Veolia to pay the latter wage.

It has urged the council “to right this wrong” as soon as possible, as Sheffield workers are, on average, paid less than anywhere else in the country, according to the Resolution Foundation.

Peter Davies, GMB, senior organiser said: “The living wage is called that for reason – it’s the minimum hourly rate needed for people to be able to pay their rent, put food on their family’s table and clothe their children.

“Sheffield City Council has rightly agreed to pay the living wage throughout the authority.

“So why are they allowing Veolia to pay staff below [it]? And why didn’t they insist on it as part of their contract with them?

“GMB calls on Sheffield City Council to right this wrong as soon as possible.”

Councillor Olivia Blake, Cabinet Member for Finance at Sheffield City Council, said: “This contract with Veolia was signed in 2001. Since then, Sheffield City Council became one of the first authorities to sign up to the Foundation Living Wage and we pay this rate to our employees.

“We also actively work with our supply chain to encourage them to pay the Foundation Living Wage. We hope to see Veolia pay this to their staff and are willing to work with Veolia to achieve it.”