Minimum wage workers can't afford a basic life in Auckland

Wednesday, 9 August 2017

Auckland mum Rita Taua-Nicholls said a living wage was the difference between a stressful life and a relaxed one.

The gap between the living wage and the minimum wage in Auckland can be the difference between a life of poverty and one spent in relative comfort. Shabnam Dastgheib speaks to those struggling to make ends meet one side of the threshold, and those able to get by more happily on the other.

Mother-of-five Rita Taua-Nicholls says having both her and her husband earning above the living wage has meant so much to her family.

Living Wage Movement Aotearoa convenor Annie Newman wants to 'shift people away from having to feed the kids instant noodles and work every hour of the day.'

They are now able to save, afford internet at home and eat fresh vegetables and fruit.

Taua-Nicholls, who now works for Kai Pasifika, moved up to earning $20.20 an hour this year after working for a different employer for the minimum wage.

Auckland mum Nikita Ball says rents and food prices in Auckland are far too high.

Buying healthy food for their children is a big worry for many low-paid workers.

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Unite Union's Joe Carolan says rent control and housing stock are urgently needed in Auckland, as companies struggle to retain low-paid workers in the city.

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The difference in the couple's budget has meant she and her husband can provide more for their children, get a second car and afford school activities. 'It's mainly for my children, not much for my husband and I.'

In an election campaign where a lot of focus has been on beneficiaries, Aucklanders on low-paid incomes say they would actually be better off on a benefit once they've factored in rent, childcare costs and transport to and from work in the country's most expensive city.

According to the 2013 census, the median gross income in the Auckland region was just under $30,000 a year, or about $576 a week. A worker on the living wage would bring home around $800 before tax while one on a minimum wage would be paid $630 gross.

While incomes in Auckland are higher than the national figure, rents are also the highest, with the median weekly rent sitting at around $530 a week.

Campaigners for a living wage say the $20.20 figure can mean the difference between a life in poverty and a decent, basic life. Critics say a living wage only artificially inflates wage prices and doesn't result in any increase in productivity.

Living Wage convenor Annie Newman said earning the living wage would give many the opportunity to fully survive and thrive in society. 'Low-paid workers, to feed their families, often have to work every day of the week and very long hours.'

The living wage is set at the same level for the whole country and is recalculated each year.

Newman said there had been some consideration given to a regional rate to match places like the UK which had a 'London weighting'.

But the costs associated with Auckland lay mainly in higher rents and Newman said central government subsidies were designed to level the playing field in that regard.

Auckland Chamber of Commerce chief executive Michael Barnett has previously said the living wage made businesses go under and was a cost to ratepayers.

'All businesses, including councils, hire on merit. So paying a higher rate without asking for better performance is not sound business practice,' he said.

But those who were earning above $20 an hour said the living wage meant they could live a decent life. Those on lower pay rates told stories of poverty, hardship and daily struggles.

West Auckland mum Holly Jackson, 24, currently works for $16 an hour in childcare while she and her partner pay about $450 a week in rent. 'The people that are on minimum wage that have to pay for childcare and rent, we'd actually get more on a benefit.'

The couple live week to week and aren't able to save. They have high power bills due to the need to keep the house warm for Jackson's asthmatic son and also pay a lot in transport costs to get to and from work.

Jackson said if she was paid the living wage she would be able to provide things like swimming lessons for her three-year-old and buy healthier food. 'I know a couple of people on that mark [$20 an hour] and they live a lot better life than the people who are on $16 an hour. It would make a big difference especially for children.'

Jackson said moving to the regions was not an option as it would mean taking her son away from his grandmother and moving somewhere without the certainty of work.

Unite Union spokesman Joe Carolan said he was hearing horror stories of Auckland rent increases that were hitting low-paid workers hard.

He said he knew one worker whose rent went up $100 a week and then again by another $80 in a short time. 'Poverty is real, people can't survive. People worry about how their kids will live in this city.

'The big problem with what's happening in Auckland with housing market speculation is beginning to impact the ability for companies to retain workers in Auckland.'

Carolan said the city desperately needed more housing stock and some form of rent control.

Unite Union members who anonymously shared their stories said they were paying rents of close to $600 for three-bedroom houses, and they then still had to factor in commuting costs.

A common theme among low-wage workers was the worry of not being able to afford costs associated with schooling and not being able to provide children with fresh fruit and vegetables.

South Auckland retail worker Nikita Ball, 22, said the minimum wage and high rent costs meant she could only provide things like noodles, toast and eggs for her family. Meat, fruit and vegetables were a rarity but twice a week the family tried to have a healthy meal.

'I don't think the problem is how much we are getting. Don't get me wrong, I would love to earn more but I would also love it for prices to go down. Living is so hard. We're trying to bring up our three-year-old son as healthy as can be but when we are only left with $70 to buy food and pay bills, our diet is very little.'

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