Hutt City becomes third living wage accredited council

Monday, 15 November 2021

Hutt City Council have become the latest local authority to become a living wage accredited employer.

The Hutt City Council has become an accredited living wage employer, with all contracted and directly employed staff now earning at least $22.75 an hour.

The living wage is an opt-in scheme, separate from the government-set minimum wage which is currently $20.

Council of Trade Unions economist Craig Renney said, “The living wage is fantastic news for workers, it puts money in the pockets of people who need it.”

Hutt City became the country’s third local authority after Wellington City and Dunedin City to gain the status when it agreed this month to pay its contractors the new rate.

* Govt policy choices to blame for high inflation that disproportionately affects the poor

* Coronavirus: Government's priority is to stop the spread of the virus

Finance Minister Grant Robertson weighs in after a hospitality union said there is no skilled labour shortage, it's just that the hospitality industry isn't paying workers enough.

The road workers, rubbish collectors and street cleaners are among those now covered by the new policy. The council resolved to pay its directly employed staff the living wage in 2018.

Renney said the Hutt City’s new status was a welcome change.

“The living wage is the wage calculated to make sure people lead decent lives – that will allow them to participate and enjoy society.'

The living wage would benefit the entire community, Renney said.

“People on the living wage don’t tend to take off to Aruba on a tax holiday – they spend the money in the local community which supports jobs. This will strengthen the Hutt’s economy and create jobs.”

Hutt City mayor Campbell Barry said the living wage ensured all those who contributed to the council’s work were fairly paid.

“It’s the right thing to do, for our people, their families and for our community, and is a significant step towards ensuring people can live with dignity and enabling a city where people can thrive”.

The Government has directed its departments and agencies to ensure contract tenders for the likes of cleaning services, catering, and security, are negotiated on the basis of the living wage from December.

With the government setting the agenda with its own living wage policy, it was time for more organisations to examine becoming living wage employers, Renney said.