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

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Stats: Wind And Geothermal Emerge As Significant Sources Of Energy

Geothermal’s contribution to New Zealand’s total renewable energy generation increased from 11.5 percent in 2007 to 21 percent in 2015.... The value of wind jumped from $238 million (2 percent of total renewable energy generation) in 2007 to $884 million (6 percent) in 2015. More>>

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news