Christchurch City Council 'dragging the chain' on living wage plans

Monday, 23 April 2018

The Christchurch City Council has no plans to increase its minimum pay rate to the 2018 living wage of $20.55, 35 cents more than last year's living wage it adopted from October.

The Christchurch City Council has no plans to pay staff the updated living wage.

It has also been accused of 'dragging the chain' compared to Auckland and Wellington councils, both of which have living wage policies encompassing their council-controlled organisations (CCOs).

'It's very difficult to see the political will in Christchurch that exists in Auckland and Wellington,' Living Wage Movement national convener Annie Newman said.

'They've made an initial tentative step, which is important, but as yet we see no political will for Christchurch to become a living wage council.'

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The Living Wage Movement announces the hourly rate each year. It is based on research done by the Family Centre Social Policy Research Unit.

Councillors voted last August to pay staff at least $20.20 an hour, the then-living wage, from October 2017. The policy was estimated to cost the council an additional $775,000 a year and benefit about 470 staff.

The increase does not apply to workers at CCOs or contractors. However, a delayed report on the impact of doing so is expected in May.

The Living Wage Movement, made up of community groups, unions and faith-based organisations, announces the living wage, determined by an independent research unit, each year.

The 2018 rate was set at $20.55 on April 4, a 35 cent increase on last year. It translates to a gross income of $42,744 a year for a 40-hour working week.

Accredited living wage employers have until September 1 to adopt the new rate. The Christchurch City Council, which is not accredited, has no plans to do so.

A spokeswoman for Mayor Lianne Dalziel said last year's resolution to adopt the $20.20 rate did not address further increases to the wage.

Dalziel would need further advice from the council on any increase before she could comment, she said.

The Wellington City Council will start paying the $20.55 rate to council staff, CCO staff and core contractors by the September deadline.

Christchurch City councillor Aaron Keown supports raising the council's minimum pay rate to the new living wage of $20.55

It plans to get accreditation from the Living Wage Movement by 2019. To gain accreditation an organisation has to pay the living wage rate to all its employees and contractors.

Auckland Council has a phased approach for adopting a living wage for council staff and staff of CCOs. However, contractors and volunteers are excluded.

Its living wage policy involves lifting wages from a minimum rate of $18 an hour in September 2017 to an estimated $21 by September 2019.

While it is not seeking Living Wage Movement accreditation, Newman applauded Auckland Council's efforts and said it was important all councils set a standard.

'There's a moral imperative as well as a business imperative to pay people that they have control over enough money so they don't live in poverty,' she said.

Christchurch City councillor Aaron Keown, who moved the council adopt the living wage during the vote last year, said the council should increase the rate to $20.55.

'You can't say that you have the living wage if it's almost the living wage.

Keown said the council should also move to pay workers at CCOs the wage, adding it was embarrassing Auckland and Wellington were leading the charge.

'Once upon a time Christchurch as a city and Christchurch as a council had a really proud record for its social strategies and how it cared about people. So to be dragging the chain is a little bit embarrassing to say the least.'