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

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news