MEDIA RELEASE

4 October 2013

Brown supports living wage for council employees

Auckland Mayor Len Brown says that he supports the Living Wage concept and if re-elected will propose that Council investigate options to implement a Living Wage to its employees.  If implemented, the increased cost can be derived from efficiency savings within the Council.

“If a review concludes that it is feasible and affordable to ensure all direct employees of Auckland Council and the Council Controlled Organisations are paid a living wage, I will support the measure.  The cost, if implemented, should be derived from efficiency savings which will continue to be delivered as we bed in the amalgamation of Auckland’s old councils,” Mr Brown said.

“I would prefer that this was an issue which central government should address through adjustments to the minimum wage.  We need to accept, however, that Auckland is the most expensive city in New Zealand in which to live and that getting by on the minimum wage is very difficult. 

“We need to ensure that people in work are being paid wages which enable them to meet their living costs, and that they are able to participate in society with a degree of dignity and security.  If wages are not meeting that requirement, something needs to change.

“Every employer must consider their own situation.  A ‘living wage’ could be feasible at Auckland Council, providing we can meet the increased costs from efficiency savings.  But a full review is needed to confirm that.

“If I am re-elected, mine will be one vote on the Council.  Whether a living wage for council employees is implemented or not will be a decision for all councillors. 

“The review needs to assess what constitutes a living wage.  Currently, most experts suggest that a figure of around $18.40 per hour, as calculated by the Family Centre Social Policy Research Unit, is appropriate.

“We need to know how many employees earn below that level, and what implementing will mean for wage and salary relativities across the organisation.  I expect that we would be looking at a $2-$3 million cost to the Council. 

“If the level of increased operational expenditure is feasible and can be found from efficiencies, then I will support a living wage for council employees.”

ENDS

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