Coronavirus: It's time to 'be kind' to Auckland Council contractor cleaners

Sunday, 10 May 2020

Mayor Phil Goff launched his 2019 mayoral campaign at a venue in Papatoetoe, calling for a review of Council Controlled Agencies.

OPINION: 'Be Kind' has become a national clarion call – a quality we are urged to keep at the front of our minds through coronavirus, the sharpest social and economic disruption in our history.

But among Auckland's lowest-paid workers are those who clean Auckland Council buildings and facilities, and they feel that kindness has been absent.

With buildings closed, the council has suspended most of the contracts and workers are being paid only the government wage subsidy by the sub-contractor firms that employ them – a 20 per cent pay cut.

They had been buoyed since 2019's election pledge by Mayor Phil Goff to extend the 'living wage' of $21.15 an hour from council staff, to those like the cleaners, who work indirectly for the council

* Auckland mayoral race: Phil Goff promises to lift cleaners' wages if re-elected

* Auckland Council now pays living wage to staff

Instead, the cleaners' minimum wage rate of $18.90 has been cut to $15.12 for those temporarily unable to work.

One of those cleaners, Malia Lagi, was pictured with Goff during his 2019 mayoral election campaign.

Cleaner Malia Lagi was promised the living wage by Mayor Phil Goff. She's yet to see it and is now struggling to pay for her groceries.

Auckland Council has maintained that as the cleaners are employees of contracting firms, it cannot top up their wages.

However, that is exactly what Wellington City Council has done. So what is different?

Auckland Council, or rather its predecessor councils and others, got out of employing many frontline cleaning, security and maintenance staff, opting to have that work done by external contract firms.

It is smart business practice. When Auckland Council re-tendered its major maintenance contracts in 2017, it proudly announced it had saved $30 million a year for the same or better level of service.

Four 'mega-contractors' won work for five geographical areas, then went out and hired sub-contractors who employ staff to do some of that work, such as cleaning.

One of the 'megas' is council-owned AIMS, which pays the living wage. The other four are only 'encouraged' to by the council, without specifically being funded for it.

The sub-contractors can't top up their workers' 80 per cent level pay without higher payment from the 'megas' they work for, and the megas can't unless the council pays them more.

Auckland Council contracts five major firms which in turn hire sub-contractors, who hire cleaners.

Stuff understands Auckland Council would not entertain 'topping up' the wage subsidy.

In Wellington City, the council itself directly contracts the cleaning firms and already required the firms to pay living wage rates.

In negotiations also involving the union E tū, Wellington City Council agreed to do the 20 per cent top-up with back-pay. The council would not comment on that arrangement.

Stuff understands that not only are all contractor-employed cleaners being paid the full living wage, but that at least one contractor is paying those who still have work to do, a 10 per cent bonus.

E tū and the Living Wage movement have begun a petition calling on Goff and the councillors to match the Wellington top-up.

Local bodies are no longer elected only by property owners, but by all residents.

Auckland Council may believe it is acting in ratepayer or property owners' interests by keeping a lid on costs as it grapples with a big financial hit from Covid-19 – but equally it is there for the interests of those who cannot afford to own the roof over their heads.

Stuff asked Goff what moves he had made, if any, to explore a top up by the council.

His reply by email did not address the question but said:

'The contractors who employ the cleaners have been paid a lump sum by the government to cover 12 weeks of wages for their workers. If their workers return to work before the expiry of the 12-week period, it is for the companies to consider how that money can be used to top up cleaners’ wages.'

With Auckland Council facing major revenue cuts due to Covid-19, Stuff asked Goff whether he still intended to seek the introduction of a living wage for contract cleaners in this year's budget. He replied:

'It is my intention to lift contract cleaners to a living wage. Discussions are taking place within council to determine what the timing of this needs to be given the impact of Covid-19 in slashing council revenue.'

Auckland Council can do pretty much anything its governors require.

Those governors, the councillors, should consider their part in resolving the plight of those who clean the offices from which they work.