"Significant Moment”: Living Wage Arrives In Hospital Industry

One of New Zealand’s largest private hospitals has become the first hospital to be a Living Wage accredited employer. Waikato’s Braemar Hospital will now pay all its staff, including those in laundry, cleaning, sterile supply and kitchen services, at least the Living Wage (currently $22.75). “We’re pleased that in the midst of a pandemic, paying a Living Wage or above to all essential workers in private healthcare is now the benchmark,” said Living Wage Employer Programme Lead Felicia Scherrer, calling the moment “significant” . “It is good to see Braemar leading the way and we look forward to seeing all private hospitals step up and do the same.” The Living Wage is designed to cover the necessities of life and allow families to participate as active citizens in the community. At Braemar, the pay of 35 workers will rise as a direct result of the Living Wage accreditation.

Bhawna Prasad was at work at one of New Zealand’s largest private hospitals when she got a “shock” opening the letter informing her she would be paid a Living Wage. “I immediately took a screenshot and sent it to my husband,” she said. “He was happy too. It was exciting!”

Prasad, who works early shifts cleaning cath labs and offices at Hamilton’s Braemar Hospital before picking up her 7-year-old daughter from school, said the Living Wage will help her family to dream and plan for the future.

She is one of 35 Braemar workers (making up 13% of the staff), whose pay is increasing to at least the Living Wage of $22.75, with an inflation adjustment due in September. Those affected work primarily in laundry, cleaning, sterile supply and kitchen services. The Living Wage is designed to cover the necessities of life and allow families to participate as active citizens in the community.

Braemar is the first of the country’s hospitals, including 75 private hospitals, to be accredited as a Living Wage employer, which is a “significant moment” said Living Wage Employer Programme Lead Felicia Scherrer. “We’re pleased that in the midst of a pandemic, paying a Living Wage or above to all essential workers in private healthcare is now the benchmark. It is good to see Braemar leading the way and we look forward to seeing all private hospitals step up and do the same,” she said.

Braemar Hospital Chief Executive Fiona Michel says the Living Wage accreditation makes sense from a human rights, dignity and health point of view, as a responsible employer. “If you’re in the business of healthcare, fixing people inside your hospital, it’s right to minimise the chance of your staff going through the health system as a result of poverty,” she said. “Once you’ve seen the data linking poverty to a lack of health you can’t unknow it.”

Over 85% of the workers whose pay is increasing due to Braemar’s Living Wage accreditation are women. “It’s great we’re celebrating this good news for women and their families on the eve of International Women’s Day” said Scherrer. “Around two thirds of minimum wage workers over 25 in Aotearoa New Zealand are women, so the Living Wage Movement helps shrink the gender pay gap.”

Braemar laundry supervisor Elaine Lassey says the Living Wage and its annual inflation adjustments will give peace of mind for affected staff, especially given how quickly prices are rising. “Petrol’s gone up – you can’t fill your car up. You can spend $100 at the supermarket and come out with only two bags. So the Living Wage takes a bit of stress away,” she said. “People can get on with work and life, and focus better without that extra worry.”

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