There is no link between "new dem' and living wage. LW is a progressive thing. It took a lot of heavy breathing for the 'new dems' to come around on the minimum wage. They haven't bought the LW yet.
The idea of LW being part of some pressure to privatize doesn't wash because the LW applies first off to contractors. Even so, the cost implications are likely to be negligible. First, there aren't enough workers -- relative to public spending in toto -- for whom the LW would 'bite' since they make more than a LW. Second, to some extent the LW would redistribute contract revenues between workers and boss
The more likely effect of LW is pressure on contractors to recognize unions. LW regs are typically suspended where there is collective bargaining.
mbs