Living-wage call still to be made

Councillors want to know more about the costs involved in implementing a living-wage policy for employees.

The Tauranga City Council is investigating the costs and implications of a living-wage policy for all its employees.

In June, during the council's Long Term Plan deliberations, councillors decided to consider developing a living-wage policy and were due to make the call on Tuesday, but decided more information about the cost and implications of a sustainable policy was needed.

Ratepayer Peter Malcolm addressed the councillors during the public forum, saying the living-wage issue was about creating a "better life for the poorly paid".

Councillor Steve Morris

"How can Tauranga City Council afford this? The answer is, quite clearly, by controlling the incomes of those at the top."

Mr Malcolm said there was an argument the council needed high pay rates to attract the best people, but these people would be attracted to Tauranga anyway because of the climate and lifestyle.

Councillor Gail McIntosh said paying employees a living wage would impact Working For Families and accommodation supplements.

She said she was wary of imposing more costs on ratepayers.

Making any living-wage policy cost neutral was Cr Steve Morris' (pictured) biggest issue.

He recalled a conversation with the chief executive last year about the possibility of allocating a portion of income increases from the top pay tier and using that to pay for a wage increase in the bottom tier.

He shared Cr McIntosh's concern these people would no longer be eligible for Working For Families and accommodation supplements.

"This is a really key point in the argument. They may not be better off in terms of the amount of money in their bank account," he said. "The key to me is that the ratepayers are not subsidising the reduction in Government subsidies."

Cr Catherine Stewart said there was a growing wage gap between the rich and poor in New Zealand.

"The gap has widened hugely, which I think has created a lot of the problems in our society."

Cr Rick Curach said the council should show leadership, and people with lower wages needed more than to just survive.

Cr John Robson wanted further information on the cost of implementing the policy. "I don't believe we should make a feel good policy without understanding how that policy can be implemented and sustained."

What is the Living Wage?

* Living Wage Aotearoa New Zealand describes it as "the hourly wage a worker needs to pay for the necessities of life and participate as active citizens in the community".

* It reflects the basic expenses of workers and their families such as food, transportation, housing and childcare, and is calculated independently each year by the New Zealand Family Centre Social Policy Unit.

* The Living Wage rate is voluntary and for 2015 has been calculated to be $19.25 per hour, 30 per cent more than the minimum wage set by the Government.