1800 banking sector staff get pay rise as industry commits to living wage
Monday, 27 July 2020
Nearly 1800 people are set to receive a pay rise as the banking sector becomes New Zealand’s first fully living wage accredited industry.
The move will mean everyone employed by the 17 members of the New Zealand Bankers’ Association, including contractors such as cleaners and security guards, will be paid at least the living wage.
The living wageis currently $21.15 per hour, and will increase to $22.10 per hour on September 1. It is set by an independent group, the Family Centre Social Policy Research Unit, based on the assessed needs of a family of two adults (one working 40 hours per week, and one working 20 hours per week) and two children.
The minimum wage is $18.90.
**READ MORE:
* Reserve Bank considers extending home loan holiday lifeline
* TSB becomes accredited Living Wage Employer
**
The living wage is designed to be a rate of pay at which people can live with dignity and participate in society.
First Union, which represents bank staff, said everyone employed directly by the banks should already been earning a living wage.
The banks said their staff were already being paid at least the living wage.
At ANZ, 235 contractors were directly affected but spokesman Stefan Herrick said there was also a “ripple effect” where others had a proportional increase. At BNZ, there were 350 directly affected.
At Kiwibank, 113 cleaners, security guards and maintenance people were set to get a raise. Westpac said 640 contractors would be paid more because of the move.
“As one of the largest industries in the country, we are showing leadership by committing to paying the living wage,” says New Zealand Bankers’ Association chief executive Roger Beaumont. “I encourage all industries to, where possible, pay the living wage to their employees and contractors.
“There was no simple solution to accrediting every bank,” says Beaumont. “Large banks had huge numbers of contractors to work with while others had to get approval from international head offices. Navigating and, in some cases, seriously challenging those policies showed the effort everyone in the industry was willing to go through.”
He said most of the 1800 were people who performed regular contract work for banks. He said casual contracts, such as an electrician on a one-off job, would not be covered but anyone who was engaged monthly or weekly would be captured.
Beaumont said he was not sure how much it would cost the banks to introduce but it was “not about the money”. “We felt as an industry we should do it properly and do the full accreditation.”
Annie Newman, national convenor for the living wage, said it was the first time a whole sector had been accredited.
“Banks are leading the way for many other sectors that could afford to follow suit and that’s important at a time when across the country so many workers are struggling during this Covid crisis. The message is, if you work in a bank you will be paid a decent wage whether you are a bank employee, a security guard or a cleaner. That’s fantastic.”
Workplace Relations and Safety Minister Andrew Little said it was a “great decision”.
“Paying fair wages has obvious benefits for employees: it helps individuals and families put food on the table and live in a warm, healthy home, and reduces the need to work long hours just to scrape by. It enables workers to participate as active citizens in their communities.
“It also has significant benefits for employers. Higher wages are likely to lead to improved productivity, as well as better workforce recruitment and retention.”
Banks employ more than 25,000 people in New Zealand.