The F&C UK Property Fund, which is operated by BMO Global Asset Management, is the first property fund to be accredited as a Living Wage employer, the fund manager said.
The accreditation, which is made by the UK’s Living Wage Foundation, is a result of the fund ensuring that in-scope employees of all third-party contractors are paid the real living hourly wage of £10.55 in London and £9 across the rest of the UK.
All contracts had to be reviewed and, in some cases, employers were told to give pay rises to meet the Living Wage threshold.
Guy Glover, the fund manager, said: “In many of the buildings we own, people will work as cleaners, receptionists or in security, which are jobs that traditionally pay low wages. The government’s National Living Wage provides some protection, but the real Living Wage goes beyond providing a subsistence living, giving an appropriate wage to remove reliance on government benefits.”
Glover said the move was to promote wellbeing and health for the employee and any dependents and will help with employee retention and productivity.
“Paying the real Living Wage is a simple intervention that makes big societal difference and is a standard I believe we should adopt across the industry,” Glover added.
Other funds run by BMO Real Estate Partners are in the process of working towards accreditation.
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