Contractors won’t get living wage

The Christchurch City Council is considering introducing a living wage for its employees, but its contractors and subsidiary companies will not be included.

Adopting a living wage of $20.20 for all direct council employees would cost more than $775,000 a year and benefit about 470 council staff, representing 16.5 per cent of the council’s total workforce.

The council would not require its contractors and sub-contractors to adopt a living wage because the costs would be significant, a council report said.

Adopting a living wage across the companies owned by the council’s investment arm, Christchurch City Holdings Ltd (CCHL), including City Care, would cost more than $7.2 million and was not being considered.

A council report outlines three options including adopting the living wage for all directly-employed workers, partially adopting a living wage based on a stepped approach, and not adopting a living wage but making a commitment to increase the wages of the lowest paid staff.

No recommendations have been made in the report, after the council’s strategic capability committee was unable to make a majority decision when it debated the report in May during a public excluded session.

The council will discuss the options at a meeting on Thursday.

The living wage campaign aims to reduce inequality and poverty by lifting wages of the lowest paid.

Canterbury Employers’ Chamber of Commerce chief executive Peter Townsend opposed the living wage and said higher wages could be achieved by growing the region’s economy.

‘‘Lifting everyone’s wages is something we should all be aiming for . . . it is not done by a stroke of a pen.’’