Living wage advocates urge Whanganui council to pay more

Tim Metcalfe speaks in support of the living wage at Whanganui District Council's annual plan hearings.

Whanganui's district council was called upon to become a "living wage' council by paying its staff a minimum wage of $20.20 per hour.

The living wage is different from the legal minimum wage, currently set at $15.75 per hour. It is described as the hourly wage a worker needs to pay for the necessities of life and participate as an active citizen in the community.

Tim Metcalfe, representing The Living Wage Group, said an Official Information Act request revealed council was paying 60 staff below the living wage amount and urged council to increase those workers' wages.

That would cost $122,000 or about $5 a year per ratepayer, an annual plan submission hearing this week was told.

The extra income would likely be spent in the community and be subject to the multiplier effect, Mr Metcalfe said. The multiplier effect is an economic term referring to how an increase in one economic activity can cause an increase throughout many other related economic activities.

"I have no problems with my rates going up a bit. And it makes economic sense."

David James, representing Whanganui Quakers, said his group was deeply concerned at the growth in inequality in society.

"We do not advocate a flat level of economic equality, but a range of income where the most advantaged are not so far removed from the least advantaged as to live in completely different realities," Mr James submitted.

Those earning less than the living wage often lived insecurely. Any significant adverse event like illness or the break down of a household appliance such as a washing machine often meant families could not afford school fees and trips, uniforms and may need assistance in the form of food parcels. "Anything that happens can become a disaster."

"The council is not being asked to blaze an untrodden trail," Mr James said. "But it would be following other councils within this country and elsewhere whose experience should assist our community."

Councils which paid the living wage included Wellington, Hamilton, Porirua, Hutt Valley and Auckland, the hearing was told.

Mayor Hamish McDouall asked submitters how they suggested council meet the $122,000 in additional wages. He said the options were increasing rates, dis-establishing three or four jobs, or cutting funding somewhere else.

Mr Metcalfe urged council to treat it as an economic investment that would have a widespread positive community impact.

Mr James added: "As a public body Whanganui District Council is accountable to its community. We ask the council to join what is unquestionably a growing movement towards social justice, better health and stronger communities."