E tū is furious to learn that the Government is proposing to scrap the Living Wage for workers employed by government contractors.

Currently, contractors who deliver cleaning, security, and catering services for government agencies are required to pay at least the Living Wage ($27.80 at present time) to all their workers. In a media release today, Nicola Willis has announced a proposal to scrap that requirement altogether.

E tū National Secretary Rachel Mackintosh says the proposal is cruel.

“It is heartless to consider taking away this important protection for workers, which will categorically mean their lives will become much harder,” Rachel says.

“The affected workers, once celebrated as essential workers during the Covid-19 pandemic, are employed by contractors to do crucial work keeping our public buildings clean and secure. They are the same workers who are often ignored by governments and exploited by businesses.

“The Living Wage requirement in the procurement rules gives these workers some much-needed reprieve. Our members have reported the huge difference the Living Wage makes in their lives, like allowing them to do the basics – pay the bills, put food on the table, buy clothing for their kids, and spend more time with their families.

“Proposing to end this support for these workers is frankly abhorrent.”

Rachel says the Government’s justification is completely inadequate.

“Nicola Willis says this is to “simplify the process” of procurement for businesses.

“Basic human dignity is not an obstacle to delivering services. Spinning this as some kind of streamlining process is disgusting – in reality, this is a proposal to make cleaners, security guards, and catering staff even poorer so the National-led Government can give more to their rich mates.

“Even more galling is Willis’ claim that this is “part of [their] plan to increase jobs and incomes” – you don’t have to be an economist to understand that you do not increase incomes by cutting them.

“Nicola Willis should face up to affected workers and justify herself to them. Why does she think they shouldn’t be able to put food on the table? Why does she want to make it harder for them to pay for their kids’ school uniforms?

“She will not face the workers. This Government has refused to engage with unions on these issues, so they can keep living in complete ignorance of the damage they are causing.”

Rachel says it’s not too late to change course.

“These changes are now open for public consultation, and if the Government has any regard whatsoever for the essential workers employed by contractors to look after government buildings and provide key services, they will keep the Living Wage requirement in their procurement rules.”

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