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Introducing the London Living Wage

OVERVIEW

In June 2018, Andron begun mobilisation of the JLL London portfolio. At this time, a total of 44 out of 89 sites were not paying the London Living Wage (LLW) to their operatives. Following an in-depth analysis of the London employment market, we decided that we should aim to be paying the LLW to remain competitive within the industry.

APPROACH

Once mobilisation was completed and the compliant service was being delivered as per the specifications, with no gaps in resource levels and resilient levels of cover staff in place, we created a planned site-by-site service review with the dedicated management team.

The site reviews were performed in the order of annual spend, with the following core factors forming part of the service reviews:

• Net Sq. Ft. to be cleaned
• Tenant headcount
• Core peak times
• Specification
• Janitorial requirement
• Supply chain
• Periodic frequencies

Once the review of all sites was completed and our team had designed alternative proposals, these were presented to the Facilities and Building Managers. Where changes reduced costs, we used the gained savings to promote the payment of the Living Wage.

At this stage, there were still 25 sites not paying the Living Wage due to low cleaning hours, therefore minimising the options to review and find savings.

A full tender of all supply chain activity was then carried out after mobilisation; due to time constraints; which included all of our central London sites to encourage economies of scale. As a result of the savings found during this process, we were able to convert the last 25 sites to LLW at zero cost to JLL.

RESULTS

1. 15 months after mobilisation, with minimal cost to the client, all JLL Central London cleaning operatives are paid the LLW.

2. The 2019-2020 Living Wage % increase, as of November 11th, increases the rate from £10.55 to £10.75. However, as part of our current fixed pricing agreement with JLL, we have a planned pay increase to £11.05 from December 1st meaning that we will be paying 30p per hour above the LLW.

3. Through labour initiatives, innovation, equipment, and supply chain tendering we have managed to complete the switch to paying LLW, becoming the first JLL portfolio to pay 100% of staff the Real Living Wage.

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Company Registration No. SCO78744

Andron House

2 – 3 Howe Moss Avenue

Kirkhill Industrial Estate

Aberdeen

AB21 0GP

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