Taxpayers' Union celebrates win on living wage

29 MAY 2017
FOR IMMEDIATE RELEASE

The Taxpayers’ Union is welcoming the decision of the Hutt City Council last week to reject a blanket ‘living wage’ policy and instead give permission to the Council’s Chief Executive to pay a living wage "where it can be justified as the most cost-effective way to deliver a Council service" – effectively the status quo.

The Taxpayers’ Union – led by its research fellow, Jim Rose – has mounted a campaign exposing the flaws in the argument made by living wage campaigners that their policies help alleviate poverty or are ‘efficient’. In February it exposed the Wellington City Council’s contentious implementation of its own living wage policy which saw 17 former parking wardens lose their jobs.

Taxpayers’ Union Research Fellow Jim Rose, says, “This is the right decision from the Hutt City Council in terms of both value for money but also ensuring those in low skilled jobs are able to find work.”

“On the basis of legal and economic advice, the majority of Councillors rejected what is a populist, well organised but ultimately flawed campaign to impose living wage policies on ratepayers across the country. Councilors deserve full credit.”

“There is no doubt that the low-skilled workers at the Council and across the Hutt could benefit from higher wages. That’s why we need to ensure the Hutt remains competitive and an environment attractive to employers. A living wage policy would have smashed the bottom rungs of the ladder for unskilled workers and forced up rates – for businesses and residents – for little or no reduction in poverty.”

ENDS

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