Living wage pledge

If re-elected, Labour promises to give a pay rise to those government cleaners, caterers and security guards on minimum wage.

Labour’s policy would see core public sector agencies required to pay contractors a living wage before extending the rule to the wider state service, including district health boards, “as the Covid recovery allows”.

The “living wage” is currently $22.10 an hour — $3.20 ahead of minimum wage, which is $18.90 per hour.

Core government agencies include the New Zealand Police, Corrections, Ministry of Education, Inland Revenue and the Ministry of Health, among others.

Workplace Relations Minister Andrew Little, who launched the policy in Auckland with Economic Development Minister Phil Twyford, said the policy could mean almost $100 a week extra for a contracted worker who is currently on minimum wage.

They said the government had an important role to play as an employer of “setting an example of what fair employment practices and good conditions look like”.

Labour estimated thousands of workers were likely to benefit from the policy — 400 security guards were paid the living wage when it was rolled out to contracted guards at the Ministry of Social Development.

The policy would cost the government $18 million more a year.

“Covid-19 has shone a light on the many workers who do important work in our community but who are not well paid for it,” Little said.

“We can do a lot better at lifting wages and easing financial stress for hard-working New Zealanders.”