Tauranga City Council could become living wage operation

Wednesday, 12 September 2018

Tauranga City Council will vote on adopting a living wage for all direct employees.

Casual employees of Tauranga City Council could be in for a windfall with the council one-step closer to adopting a living wage.

The living wage, currently calculated as $20.55 per hour or $42,744 per annum, is set to be a fair minimum wage that will allow workers to afford basic needs and participate as active citizens in the community.

Living Wage convener Annie Newman talks to union delegates at PSA House.

Earlier this month, Wellington City Council, became the country's largest accredited living wage employer, which saw all core-external contractors and all council-controlled organisations receive the pay standard as their minimum salary. It added $3.4 million to the budgeted wage bill.

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The TCC community and culture workshop committee voted on September 11 in favour of recommending council adopt a living wage to all direct employees.

A full council meeting is still required for the policy to be adopted.

Council identified only 4.5 per cent of their employees are currently paid under the living wage which would equate to an additional $28,000 a year in salary payments.

Advantages listed in doing so included: staff retention, consistency with other councils that have adopted the policy, and enhances the council reputation.

Convenor for Living Wage Aotearoa Annie Newman said there are many flow-on benefits for adopting the policy.

'What we see is a transformation of peoples' lives,' she said.

'We tend to see people gain time and are able to not work as many hours a week just to get by.

'Organisations report a huge difference in staff feeling valued and that leads to productivity.'

In order for an organisation to become fully accredited, like Wellington City Council, they must pay all direct employees no less than the living wage, pay all contractors providing core business the living wage, provide access to unions and not add benefits as a zero sum to staff salary to bring wages up to the living wage.

Newman is supportive of Tauranga council adopting the living wage but said it should consider making this available to all council contractors and controlled organisations too.

'It is essential as it can become counter intuitive as it can incentive contracting out more work which can go against the spirit of the living wage,' she said.