Payback for living wage
The living wage may cost a few more dollars in wages, but businesses are reaping the rewards of loyal, appreciative staff.
There are 66 companies listed as ‘‘accredited living wage employers’’ for 2017. The New Zealand living wage will be increased to $20.20, from $19.80 an hour, from July 1.
Dan Mikkelsen, owner of Wellington’s Bicycle Junction, has been paying his staff a living wage or higher since his business began four years ago.
‘‘I’ve always felt you pay people what you feel they’re worth to you as a business,’’ he said.
‘‘We have a lot of skilled staff here who are really engaged in their roles, and if I was paying them minimum wage it wouldn’t reflect that.’’
Ezra Simons, 24, has worked for Mikkelsen as a barista for a year and appreciates being paid the living wage.
‘‘I’m absolutely more loyal. I’ve been working in coffee for a few years and I moved around because I felt unappreciated.’’
Owners of commercial cleaning business Fresh Desk, Caroline de Castro and Nicole Oxenbridge put their employees on a living wage, ‘‘because it was the right thing to do’’.
‘‘My background is in cleaning work and cleaning is hard work, it’s an underpaid industry,’’ Oxenbridge said.
‘‘When I first moved here from Australia, if someone asked me to do cleaning for minimum wage I just wouldn’t do it. I don’t think it’s enough to do that kind of work.
‘‘If I wouldn’t do it for minimum wage, why would I expect others to?’’
The pair employ about eight staff who work hard and recommend the business to people they meet who need cleaners.
‘‘They’re so supportive. I couldn’t sleep at night paying someone minimum wage,’’ de Castro said.
‘‘It’s not a hiring tactic we use but when we do hire, people see the amount [of pay] and will apply because of the living wage.
‘‘It’s good for us because we get applicants with experience and knowledge, and get the best cleaners out there.’’
But Auckland chamber of commerce chief executive Michael Barnett said the living wage made businesses go under.
‘‘Focus on improving skills and paying what a job is worth is the best way for businesses to recognise their responsibility to the communities in which they operate - not paying a ‘subjective and artificial’ living wage,’’ he said in a written statement.
‘‘All businesses, including councils, hire on merit, so paying a higher rate without asking for better performance is not sound business practice. Private sector businesses would soon go out of business, but councils take the easy option – they simply pass the cost on to ratepayers.’’