News Release

6 November 2013

Embargoed until 5am, Thursday 7 November

Len Brown to propose Living Wage for council staff

Mayor Len Brown will propose the introduction of a Living Wage of $18.40 for Auckland Council staff when he tables his first budget for the new council tomorrow.

The policy, which will cost $3.75 million per annum, will be paid for through savings in other parts of the council and phased in over three years, starting at $1.25 million for 2014-15.

The Mayor will also ask the council to investigate options for a Living Wage for staff of contracted organisations, and will propose a new ‘higher pay policy’ to ensure greater transparency and accountability for higher salaries across the council and CCOs.

“The daily life of our city relies a great deal on people who work for low wages, whether it’s people staffing our recycling centres, our libraries or working in frontline customer service roles,” Len Brown says. “It’s only fair that these people are able to enjoy a decent standard of living.

“Getting by on the minimum wage is very difficult in Auckland. While I would prefer this was an issue addressed by central government through adjustments to the minimum wage, I am supportive of moves to pay our frontline staff a reasonable wage, provided it doesn’t impact on ratepayers.

“I also want to be assured we are taking a balanced and consistent approach to pay at the higher end.

“Adopting a council-wide remuneration policy will ensure that all of the organisations working under the council umbrella pay their senior staff in a consistent and appropriate way, and that they are more directly accountable to the council for their decisions.

“I’m clear that we need to attract and retain the technical specialists and leading minds who will help build Auckland into the world’s most liveable city, but that needs to be balanced with a sensible and prudent approach to pay across the board.”

The Living Wage will apply to both Council and Council Controlled Organisation (CCO) staff, and is based on benchmark data by the Family Centre Social Policy Research Unit.

The policy will be phased in over three years at a cost of $1.25 million for 2014-15, $2.5 million for 2015-16, raising to $3.75 million in 2017-18. The cost will be met by savings in other areas of the council budget but will not impact on the delivery of frontline services.

International research shows benefits of paying a Living Wage include improved living standards for the employees and their families, as well as reduced turnover, absenteeism and sick leave, improved productivity and staff morale, and enhanced reputation for employers.

The Mayor’s proposed 2014-15 budget will be tabled at the council’s Governing Body meeting on Thursday 7 November.

ENDS

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