E tū welcomes new Living Wage of $20.55

E tū union welcomes today’s announcement of the new Living Wage rate and says there is still more work to do.

The 2018 New Zealand Living Wage rate is $20.55 an hour – 35 cents more than the 2017 rate and the smallest annual Living Wage increase since it was first launched in 2013.

The new rate was announced today by Wellington Mayor, Justin Lester at a gathering of Living Wage Employers, faith and community groups, and unions at Wellington bar and Living Wage Employer, The Rogue and Vagabond. Local and national politicians also attended.

Today’s announcement is good news for the communities of people that work for the more than 90 New Zealand companies which are accredited Living Wage Employers such as Vector, and those that work for the companies contracted to them.

It’s also good news for places like Wellington City where the council is moving towards the Living Wage for all directly employed and contracted workers, says Campaign Lead, Mat Danaher.

“The Living Wage is like a snowball,” says Mat.

“We are seeing more and more employers prepared to talk about it as a base rate. There’s a growing sense that employers know they should pay their workers enough to live on,” he says.

The new Living Wage rate is over $4 an hour above the minimum wage, and around a third of workers earn less than this.

Tassie works for a security contractor to the Ministry of Justice.

“I am earning the Living Wage thanks to the union negotiating on my behalf last year,” says Tassie.

“It’s been a huge boost. It means I can visit my son in Australia for the first time in three years.”

“Progress is clearly being made,” says Mat.

“The Government has made a commitment to paying the Living Wage to all directly employed and contracted workers in the core government, including cleaners, catering workers, and security guards, which E tū will be holding them to,” he says.

“New Zealand is taking the first few steps away from being a low waged economy with the Government’s recognition of the importance of higher wages to boosting the economy as a whole.