Companies bidding for contracts from Glasgow City Council will have to demonstrate their commitment to paying the Glasgow Living Wage under new procurement policies agreed today.

The proposal, agreed by the council’s executive committee, was one of a range of measures aimed at tackling in-work poverty announced at the 17th State of the City Economy Conference in Glasgow last month.

It means that companies that want to win work from the council will have to answer questions on their approach to recruitment, whether or not they pay the Glasgow Living Wage, and show that they do not use exploitative zero hours contracts or blacklist union members.

The answers to these questions will now carry a greater weight when council officers are evaluating tenders.

Councillor Gordon Matheson, leader of Glasgow City Council, said: “This has been a landmark year in Glasgow’s history, and provides a fantastic point from which to look to the future and how we can all shape - and benefit from - a prosperous Glasgow.

“In recent years, we have taken steps to ensure that the city weathered the worst of the economic conditions, and as a result we have emerged with a much healthier and more diverse economy. But not everyone benefits from our improved position, and we want to do everything possible to ensure that in future they will.

“Our new procurement policy will reward those companies who pay the Glasgow Living Wage, offer real community benefits, don’t employ staff on exploitative zero hours contracts, and who don’t have a track record of blacklisting trade union members.

“The responsibility to tackle the scandal of in-work poverty is something that is shared by the council and all of the contractors and suppliers with whom we do business.”

The Glasgow Living Wage will increase to £7.85 per hour (from £7.65) from 1 April 2015. The council’s 19,500 staff are all currently paid at least the Glasgow Living Wage along with a further 41,500 people employed across the city.