Churches ask: Can capitalism deliver a living wage for all?

Working long hours for little pay is a harsh reality for many Londoners. But how do we tackle the problem? This question will be considered at next week's JustShare debate, Can Capitalism Deliver a Living Wage for All?

Despite the fact the Greater London Authority now sets a tariff for a 'Living Wage' at figures higher than the National Minimum Wage to reflect the higher costs of living in London, around 15 per cent of full-time and 45 per cent of part-time employees are paid less than the 2008 recommended amount. Worse still, one in seven workers is paid less than the poverty threshold wage.

Since the launch of the Living Wage Campaign 2001, the working conditions and pay of many cleaners and other contract-workers employed in the City of London has improved, says JustShare, a coalition of churches and charities dedicated to ensuring the world's resources are more fairly distributed. Major companies such as KPMG, Barclays, PWC, HSBC and Morgan Stanley have all committed to paying the living wage set buy the GLA.

However, the coalition warns that many contractors still work long, unsociable hours for very low pay. The average earnings of a randomly-selected group of contract workers surveyed for a 2005 Report equated to just £10,200 per annum before tax and NI, and over half of those surveyed said that they received no sick pay or paid holiday.

Taking part in the JustShare debate are Ian Tew of KPMG and Gavin Edwards of UNISON. The debate will be chaired by Lucy Anderson of the GLA.

As a Living Wage employer, KPMG guarantees to pay all its employees and contractors at least the London Living Wage. Tew is expected to argue that capitalism can deliver a living wage for all, discussing the business case as well as the social justice case for supporting the Living Wage campaign. Edwards on the other hand, is expected to explain why he believes capitalism has failed to deliver a living wage for many employees both in the UK and in the developing world.

On the web: www.justshare.org.uk