NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Editorial: Key to 'living wage' will be equating it with fairness

NZ Herald
11 Feb, 2013 04:29 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Employers, too, are probably glad that the law puts a floor under the rates their competitors can pay. Photo / Mark Mitchell

Employers, too, are probably glad that the law puts a floor under the rates their competitors can pay. Photo / Mark Mitchell

Opinion
Employers need to pay skilled staff appropriately.

It would do no harm - and possibly a great deal of good - for New Zealand to know the minimum a person needs to be paid in this country to have a "living wage". A living wage, as the union movement is now proposing it, would not be a statutory minimum. It would be an accepted figure with moral force, no more.

The round figure, based on a calculation by the Anglican Church's Family Centre in Lower Hutt, could be $19 an hour, considerably more than the legal minimum adult rate of $13.50 at present. The Family Centre has added up the costs of a basic diet, the rent of a three-bedroom house in a lower quartile of value and some other expenses of two-child families in Statistics NZ's household surveys.

There will be plenty of scope to quibble in the detail of those costs and about whether all of them are absolute necessities. But there is no argument that life on the minimum wage must be a struggle. If a nation could simply legislate a comfortable living income for all its citizens, every democratic nation would do so. If only economics were that simple.

If the living wage proposal was to have legislative force, raising the statutory minimum hourly rate by $5.50 at a stroke, there would be increases in both unemployment and inflation as some employers reduced staff and others increased their prices to recover their added cost. Either way, the economy would suffer and nobody would be much better off.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

If economics was all that mattered there would be no statutory minimum wage, but social equity matters too. The minimum wage is about 60 per cent of the median income in this country and increased annually. Views differ on whether the ratio is equitable enough - the Labour Party's election platforms usually offer a higher rate - but there is no argument between the major parties that a minimum needs to be set.

Employers, too, are probably glad that the law puts a floor under the rates their competitors can pay. Without one, small businesses in industries with an ample supply of unskilled or easily trained workers would witness a race to the bottom that no employer wants but competitive survival might require.

Employers might be equally content to pay the "living wage" if none of their competitors could pay less and all had to recover the cost in their prices. The task for the union movement and those who support its proposed living wage is to give the idea so much moral force that all good employers feel bound to pay it, or at least as close to it as they can manage.

The campaign being launched by unions this week will start with soft targets - universities and local bodies - calling on them to make the living wage a condition of the contracts they accept for services such as cleaning and security. The Herald yesterday highlighted actors, truck drivers and casual labourers among those who often subsist on less than $19 and hour. The list includes cafe staff, caregivers, young carpenters, graphic designers and primary school teachers.

Low pay in the first few years of employment may be regarded as a training wage so long as it leads to a living wage for those qualified. Unions might not like starting rates but they should aim their campaign at industries paying too little to experienced people with families to support.

They are the workers who need and deserve the living wage. At 80 per cent of the median, the rate is reasonable. Now it needs to be locked into the public mind that $19 an hour is the fair adult minimum. Anything less is not a living wage.

Discover more

New Zealand

Living wage: $19 an hour ... yeah right

10 Feb 04:30 PM
New Zealand

Redundancy leaves truckies stressed

10 Feb 04:30 PM
New Zealand

The pay you need to survive

10 Feb 06:00 PM
New Zealand

Govt unlikely to support living wage campaign

11 Feb 04:17 AM
Save

    Share this article

Latest from New Zealand

New Zealand

Watch: Black Power gang members farewell Selwyn Robson with stirring haka

12 May 08:38 AM
New Zealand

Black Power members perform a farewell haka for Manurewa homicide victim Selwyn Robson.

Politics

Govt earmarks $100m for students underachieving in maths, new ‘maths intervention’ teachers

12 May 07:30 AM

One tiny baby’s fight to survive

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Watch: Black Power gang members farewell Selwyn Robson with stirring haka

Watch: Black Power gang members farewell Selwyn Robson with stirring haka

12 May 08:38 AM

Members were seen performing a haka as pallbearers carried his coffin into the clubhouse.

Black Power members perform a farewell haka for Manurewa homicide victim Selwyn Robson.

Black Power members perform a farewell haka for Manurewa homicide victim Selwyn Robson.

Govt earmarks $100m for students underachieving in maths, new ‘maths intervention’ teachers

Govt earmarks $100m for students underachieving in maths, new ‘maths intervention’ teachers

12 May 07:30 AM
Abuse in state care: PM defends broken promise, emotional Hipkins slams Govt ‘injustice’

Abuse in state care: PM defends broken promise, emotional Hipkins slams Govt ‘injustice’

12 May 07:26 AM
Connected workers are safer workers 
sponsored

Connected workers are safer workers 

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP