Cleaners campaigning for a living wage in 2013. Photo / Mark Mitchell
Cleaners campaigning for a living wage in 2013. Photo / Mark Mitchell
The Government plans to change procurement rules, no longer requiring a living wage to be paid to some workers.
A poll shows the living wage rule is supported by a majority of voters.
Union E tū warns the move could push workers into poverty, calling it “heartless”.
A large majority of people oppose the Government’s decision to remove a requirement to pay the living wage to government-contracted cleaners, security guards, and catering.
Of the people polled, 62% opposed removing living wage requirements, compared to 23% who supported removing them.
Earlier this month, Finance Minister Nicola Willis began consulting on changes to government procurement rules, proposing to dramatically reduce the number of rules companies needed to meet when bidding for government contracts.
One such rule, introduced in 2021, was that people bidding for government contracts must pay the living wage to cleaners, security guards and catering staff – the living wage rate is currently $27.80 an hour.
The results come from a Talbot Mills poll commissioned by the E tū union, which asked “as you may be aware, the Government is planning to remove the requirement to pay the ‘Living Wage’ for government-contracted cleaners, security guards, and catering. How strongly do you support or oppose the Government removing the Living Wage requirement?”
Of those polled, 44% said they “strongly” opposed the change; 18% said they “somewhat” opposed it; 15% said they “somewhat” supported the change; and only 8% said they “strongly” supported it. Another 8% were unsure.
Finance Minister Nicola Willis has proposed procurement changes. Photo / Mark Mitchell
While Act and National voters were more likely to support removing the rules, more of their voters backed retaining the requirement than removing it. The split of supporters wanting the rules removed compared to those who wanted them retained was 40% to 44% for Act voters and 39% to 44% for National voters.
NZ First voters split 20% to 63% in favour of retaining the rules, while the split for the Greens was 21% to 77%, and for Te Pāti Māori it was 19% to 74%.
The gap was widest for the Labour Party, whose voters split 15% to 76% in favour of retaining the rules.
Executive director of Living Wage Movement Aotearoa New Zealand Gina Lockyer said the results were “not surprising”.
“Kiwis intrinsically understand the importance of looking after each other, and the Living Wage is one important way to do just that.
“People who have won the Living Wage through the procurement rules have reported it to be life-changing. For many workers and their families, it’s the difference between being able to make ends meet or falling behind. It’s being able to afford school uniforms and medical expenses. It means not having to decide between doing a grocery shop or paying the power bill,” Lockyer said.
Willis has previously said the changes are about making it easier for local firms to bid for government contracts.
She plans to add a new economic benefit test for the contracts and wants to scrap 24 rules that she said “put unnecessary obstacles in the path of Kiwi businesses”.
“This is part of our plan to increase jobs and incomes by shifting New Zealand to a faster growth track,” Willis said.
Willis said the economic benefit test would “require government agencies to consider the wider benefit to New Zealand of awarding contracts to New Zealand firms when making procurement decisions”.
“Doing so will create export and employment opportunities and help New Zealand businesses to grow,” she said.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
