The Post

When the wages aren’t enough

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Identifyin­g New Zealand’s ‘‘working poor’’ will be the subject of a government study being commission­ed this month.

Unemployme­nt may be the lowest in a decade, at 4.4 per cent, but stagnant wages and rising living costs have many in employment below the poverty line.

The Ministry of Social Developmen­t estimates 40 per cent of children in material hardship have working caregivers, and 15 per cent of workers drop below the widely used poverty line of 60 per cent of the median income after housing costs.

Much is unknown beyond these estimates, so the Ministry of Business, Innovation and Employment (Mbie), Ministry of Social Developmen­t (MSD) and Human Rights’ Commission (HRC) are this month commission­ing a study to measure ‘‘in-work poverty’’. The study will define the working poor, profile and assess the risk of ‘‘in-work poverty’’.

An HRC spokespers­on said decent work was a human right. ‘‘Employment has traditiona­lly been seen as protection from poverty, but the reality is that many working Kiwi households are struggling with poverty and hardship.’’

While the HRC says any findings are not tied to specific policy, tender documents suggest the inform future poverty efforts.

New Zealand is obligated under the United Nations Sustainabl­e Developmen­t Goals to cut poverty in half by 2030. It is expected the study will be published in March 2019, at a cost of between $80,000 and $120,000.

Social Developmen­t Minister Carmel Sepuloni said the impacts of being working poor were apparent. ‘‘There are people living lives full of uncertaint­y and stress, where losing a shift work will reduction at work, an unexpected bill or an illness can spell the difference between being able to feed your children or not.’’

Sepuloni said the Government was investing $37 million into winter housing supply, and $63.4m in the Budget for housing services and rolling-out a Families Package which will increase through tax credits.

‘‘While the Government is taking immediate action to alleviate poverty, we also need to further define, measure, and increase our understand­ing of in-work poverty in NZ, and help inform policy aimed at reducing poverty and improving worker human rights.’’

The commission­ing of a working poor study comes during a month when wage concerns are making headlines.

Bus drivers in Hamilton went on strike on Monday, asking company Go Bus for the living wage. A group of dissatisfi­ed Uber drivers protested low fares and uncertain insurance arrangemen­ts the same day.

On Friday, retail chain Smiths City was ordered by the Employment Court to pay its employees for unpaid pre-work meetings. Retail workers behind the counter of other major stores have since come forward with similar complaints.

First Union retail, finance and commerce secretary Tali Williams said Government action that protects workers will help many live happy and healthy lives.

 ?? DAVID WHITE/ STUFF ?? Social Developmen­t Minister Carmel Sepuloni said the impacts of being working poor were apparent.
DAVID WHITE/ STUFF Social Developmen­t Minister Carmel Sepuloni said the impacts of being working poor were apparent.
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