The Living Wage

Written by Ben Ross - Talking Auckland

Can Auckland (Council) Support The Living Wage?

 

Auckland Council (at the time I was writing this) have been debating whether to support the policy of introducing a living wage ($18.40/hour) to its lowest paid workers (minimum wage is currently at $13.75/hour).

The policy proposal has been introduced in the Mayor’s 2014/2015 Annual Plan document that will go out for community feedback next year. There are two sides of the debate to this Living Wage policy and to be honest of it we have heard it before from both the Left and Right Wings – real boring crap.

Councillor Cameron Brewer (yeah hit me with a four by two for this) though in an interview on radio this morning made points that as a Social Liberal I would agree with. You can listen to Councillor Brewer’s interview here: “Cameron Brewer: Living Wage too costly for Council.”

 

Okay the first half of the interview is similar stuff to this from Michael Barnett of the Auckland Chamber of Commerce (Mayor’s living wage proposal ‘proves council’s inefficiency‘) – a pile of drivel and exposes some serious flaws of businesses in New Zealand (another debate). The second half of the interview though Councillor Brewer is making sense and where I can support a Living Wage concept per se.

That support being where there is a Common Good principle behind having a Living Wage while not adversely affecting wider other parties at the same time (something the Centre Right keeps purporting often as Chicken Little analogies). So yes to the Living Wage if say the executive salaries in Council were trimmed and diverted towards giving the lower paid staff a fair wage increase in these more costly times.

 

Inefficiencies and Inadequacies in our New Zealand Businesses?

I have seen this from the Auckland Chamber of Commerce: “Mayor’s living wage proposal ‘proves council’s inefficiency’” and I am sorry Michael I can not simply believe you. If you say was actually true then we would not be stuck in an actual low wage economy as we are now.

Also I see this from Barnett:

“Many Auckland businesses would struggle to pay all their employees $18.40 an hour. If we consider how many hospitality and retail stores choose to close on public holidays to avoid the higher wage rates which make their business unprofitable for the public holiday this could be a concerning indicator of how many businesses in just these sectors may not survive by paying $18.40/hour.”

 

Knowing some of our bigger firms like The Warehouse and McDonald’s have either adopted The Living Wage or not adopt Youth Wages I do wonder if these guys could help our small and medium businesses with some skills. To be honest from what I see out there, New Zealand seems not to be that great in efficiencies and “human resources” (although that is indicative of itself) with our managers and employers. I could write a post or two on our hospitality and retail sectors in NZ and why more often than not it is not flash hot here. May be another day.

 

Council adopting The Living Wage? Sure – from existing budgets and providing The Common Good test can be met across the board.

 

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