When the wages aren’t enough
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.