Wellington Chamber of Commerce
Media Statement
Friday 13th May 2016
Future Council contractors not required to pay living wage

Wellington City Council will not require future external contractors to pay their staff the living wage while on council contracts, under an agreement reached with Wellington Chamber of Commerce.

The agreement ends several months of negotiations between the Chamber and the Council after the Chamber signalled its intention to bring judicial review proceedings against a council decision to apply the living wage to its external contractors.

The Chamber was seeking to ask if the Council’s move was within its ability under the Local Government Act after councillors had voted to apply the living wage to a security contract.

The agreement ensures that Council employees can continue to be paid a living wage. From July 1 a living wage will also be paid to staff providing the council’s core cleaning and security services.

But this will not apply to future contracts for service. The Council has agreed to consult with the Chamber on any extension of a living wage to other contracts. If there is disagreement about such an extension, the parties will seek a declaratory judgment to clarify the legality of any such extensions. The Council has also agreed to consult with other interested parties regarding any extensions.

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