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The decision by food giant Nestlé to pay its contract staff and agency workers the Living Wage has been strongly welcomed by campaigners and trade union leaders.
Living Wage Foundation director Rhys Moore said: "The accreditation of Nestlé as a Living Wage employer marks a significant milestone in the campaign to tackle in-work poverty."
The head of the Unite union, Len McCluskey, said the decision was a "positive stance which shows that paying a living wage is not just good for communities but makes good business sense too".
The GMB union's Tim Roache suggested the move could enable "many more" big manufacturers to raise wages for the lowest paid employees.
Food giant Nestle has pledged to pay all of its workers the Living Wage.
The company already pays at least the Living Wage to its own employees, but it has now committed to pay agency workers and contract staff the rate, which is set at £8.80 in London and £7.65 elsewhere.
The move means about 800 different contractors that work with Nestle will implement the Living Wage by December 2017.