Wellington Employers’ Chamber of Commerce on Living Wage

Raewyn Bleakley writes in the Dom Post:

Wellington City councillors today will debate at committee whether to accept a proposal to pay the living wage to council workers. It’s a decision that could have far-reaching effects on the local economy.

Further, Treasury analysis, matched with earnings information from IRD, shows that almost 80 per cent of New Zealanders earning less than $18.40 an hour, including young people and students, don’t have children. In fact, two-parent two-children households make up just 6 per cent of families earning less than $18.40. And of those earning below that, one in five have family incomes of more than $80,000.

Anyone who votes for the living wage is voting for the most badly targeted policy in recent history. The living wage is a calculation for a two parent two child family, and as pointed out they represent just 6% of families earning less than $18.40 an hour. To apply that calculation to the other 94% of families is bizarre and daft.

Giving low-paid workers a 30 per cent increase without having a well-thought- out plan for how to create a corresponding lift in performance, and while doing nothing for other workers, is not the way to go. A business wouldn’t survive operating that way. Ratepayers deserve better management of public money from the council.

How many councillors will vote for ratepayers to fund a living wage, but don’t pay a living wage themselves? Bet you there are a few hypocrites out there.