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

 

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:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

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