A challenge to become a living wage employer and lift the pay packet of its lowest-paid staff has been issued to the West Coast District Health Board by the chairman of its board, Rick Barker.
Photo: RNZ / Nate McKinnon
The health board is not a living wage employer. At its meeting on Friday at Arahura Marae, board members heard that 10 percent of the organisation's staff (117 employees) had a base salary less than the living wage rate of $22.10 an hour.
The Living Wage Movement sets the hourly rate each year, which it determines is the amount "a worker needs to pay for the necessities of life".
West Coast health board member Helen Gillespie asked the meeting if paying the living wage was something the board was going to act on, rather than just discuss.
"I personally find it unconscionable to be here, paying people less than that," Barker said.
In her report on employee wellbeing, the health board's chief people officer Mary Johnston said 34 of the low-paid workers were on individual employment agreements and 83 were in collective agreements.
"My question is what is the appetite for addressing this - would you like a formal paper backgrounding it so you can discuss it and see if you want to pursue it, just for the individual employment people?"
It would cost an extra $49,000 a year to pay the living wage to the workers on individual contracts, and about $107,000 to do the same for those in collective agreements, Johnston told them.
But it would be very complex to pay the living wage to those in collective agreements because of all the different unions involved, she said.
Barker rejected that.
"I don't accept the proposition that it's going to be complicated for those on collective employment agreements. The law is that collective agreements set the minimums we have to pay.
"I don't know of anyone in a union who would be opposed to an employer paying all staff the living wage as a minimum. I propose we simply just do it and if someone complains, I welcome the discussion."
Board member Peter Neame said many of the lowest paid workers, the cleaners, were its most loyal staff.
"I was one myself a long time ago."
Deputy chairman Tony Kokshoorn asked if the increase would have a knock-on effect on pay levels for other staff.
It was not a relativity issue and would not affect other staff, Barker said.
"It's simply the minimum we would pay any staff - we're not cranking everybody up."
Board members would have to decide if they were prepared to wear the cost.
"When we do this I want it to be a conscious decision - you board member will be tested as to whether you are prepared to put another $150,000 on top of our deficit. That's what the decision will be, and I want this to come before our next meeting."
Speaking after the meeting, Barker said many of the health board's lowest paid employees were Māori, and paying a living wage was another step toward the health equity the board was determined to achieve for iwi.
On Thursday the minimum wage will rise $1.10 to $20. The shift is expected to increase the pay of almost 200,000 people nationwide.
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