Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Council loses control of wages budget

Wellington Employers’ Chamber of Commerce

Media Statement

19 February 2014

Council loses control of wages budget

Wellington City Council has the potential to lose control of its budget because of the living wage, says Wellington Employers’ Chamber of Commerce Chief Executive Raewyn Bleakley.

“It’s clear now that there is a high risk the living wage will get out of control and blow the Council’s wages budget.

“The revelation today that the shift from the original living wage of $18.40 to $18.80 was decided using different methodology is of great concern.

“This is especially so when using the original methodology produces a new figure of $22.89.

“Those involved didn’t use their own methodology to get to $18.80 – they just used figures to suit themselves.

"Wage increases should be about performance and productivity. This is not what the living wage is based on.

“Where does that leave the Council and its budget? And more importantly the ratepayers who have to foot the bill?

“While the Council believed adopting a living wage was well intentioned, the reality is they didn’t heed advice - that it is ultimately a flawed concept.

“The Council believe the original living wage would cost $500,000. With an increase to $22.89, we’re talking well over a million dollars annually for direct employees alone.

“They say today the living wage is $18.80, but tomorrow we could wake up and it will be $22.89. Are ratepayers comfortable that pressures from one political lobby group are setting the Council’s wages budget? We know businesses that contribute a substantial proportion of rate are strongly opposed to this.

“And what’s it going to mean for Council Controlled Organisations and companies contracting to the council if they are required to adopt the living wage?

“This absolutely reinforces all the very real concerns that were initially raised about the approach of using the living wage to set wages.

“Wellington is the only Council that has adopted the living wage. We caution Council to halt their current plan that would extend it to Council Controlled Organisations and contractors."

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news