Skycity gets in early on wage rise

Skycity Entertainment Group has pledged to lift its wages to at least $20 an hour by 2020, but denies it has been forced to do so in a bid to keep staff.

The move will lift the takehome pay of 1750 people in Auckland, Hamilton, and Queenstown, the Nzx-listed company says.

Chief executive Graeme Stephens said the company had been considering the pay rise for the past 18 months. It had decided to move before being forced to by the Government, which plans to lift the official minimum wage to $20 an hour by 2021.

Skycity said the policy was not motivated by staff retention, though that was likely to improve.

‘‘The hospitality industry across the board, anecdotally, has higher turnover which is often attributed to people considering it a job rather than a career,’’ the company said in a statement.

‘‘Alongside the training and career paths we offer, we hope this policy will support our staff to grow sustainable careers at Skycity and to feel happier and more engaged at work each day.

‘‘We considered a range of factors to come to the $20 an hour figure, including public debates over sustainable and the living wage, consulting with our employees and their union representatives, government policy, and also looking at what was commercially possible for Skycity to pay as a business.’’

Staff members would also get benefits such as health and life insurance, subsidised parking, transport, and meals and drycleaning, the company said.

Stephens said: ‘‘We know living in New Zealand is expensive, and that the hospitality industry is generally geared to lower wages.’’

He said the move made ‘‘good business sense’’ as it would help lift employee engagement.