Northland employers highlight benefits of paying living wage

NZ Herald

19-05-2025

'When you increase the wages, you attract more people with qualifications.
'If you're advertising for minimum wage, you lose some top candidates.'
The living wage emerged as a response to growing poverty and inequality, which hold back many Kiwi workers, their families and the economy.
The living wage is considered the minimum to provide workers and their families with the basic necessities of life factoring in expenses, rest, activities, and some savings.
It is a voluntary amount that employers can choose to set as a base rate for their staff.
It is currently set at $27.80 and will increase to $28.95 per hour from September 1.
That's compared to the minimum wage, which is $23.50 an hour.
While there is no data on how many Northland businesses pay the living wage, five are listed on Living Wage Aotearoa New Zealand's website including Oromahoe Kindergarten.
Wilson said that paying a living wage helps staff have more money to cover their bills, such as rent, mortgage, food, and power, and they have more money left over for leisure activities.
'It's not just about surviving, it's about thriving as well,' he said.
'At first, moving from minimum to living wage was a big jump, and we wondered how it would work, but we managed it.
'If you really want to, you can make it work.'
Janine Abernethy, who owns Marsden Metals and Recycling, a Northland metal recycler, said all 18 of their staff are paid above the living wage except for a teenage cadet, who was paid 'just below it'.
Abernethy said the living wage was 'a good barometer for employing people to understand what it costs to live now'.
The familyowned company had paid the living wage 'forever', she said.
'We've never paid the minimum wage.
'We've always paid good wages for our staff.
'You just have to appreciate your staff.'
However, Abernethy acknowledged that business owners had 'different circumstances'.
There were other ways to improve workplaces for staff, she said.
'Wages are not the main factor of employment relationships between employers and employees.
'There are a whole range of things you need to consider ... we just recently offered medical insurance to the team.
'You have to make it so it works for both parties.'
Northland Chamber of Commerce chief executive Leah McKerrow said paying the living wage would be 'challenging' for employers with a lot of staff.
'It's not a small investment, but many want to pay well because that's the way they attract staff.
'But for some, that means a 20% increase in their overall salary bill, and they can't afford it either; things are also going up for them, like rent increases.'
McKerrow said that, generally, employers want to pay their employees well.
'They know it's important for job satisfaction and retention.
'The living wage is slightly out of reach for some of them.
'Many are wanting to pay well, but the living wage requirements' impact overall is too great.'