The Labour Party's economic plan, which was released today, is promising to progressively extend living wage guarantees to public service contractors.
Photo: RNZ / Dom Thomas
Under the plan, public service contractors could earn almost an extra $100 per week.
It would start the extension of living wage guarantees with public service cleaners, caterers and security guards.
It would also require agencies to include the payment of a Living Wage in new contracts as part of renegotiations.
In a statement, Labour workplace relations and safety spokesperson Andrew Little says they plan to extend the Living Wage to core public sector contractors if elected, with "thousands" set to benefit from it.
"Labour has always stood for fairness at work, high quality high wage jobs, and an improved quality of life for our workers.
"That's why in 2018 we ensured that all employees in the core public service received at least the Living Wage, including full-time, part-time and casual employees, with 70 percent of those benefiting from the increase being women."
That change in 2018 had not included contractors. Back in 2017, Labour had also campaigned on paying the living wage - first to core government workers, then rolling it out to contractors over time.
Additionally, security guards contracted to the Ministry of Social Development are now being paid the Living Wage starting from this month, after an announcement from the party in August.
Over time, this new plan would also be rolled out to contractors in the wider state service, such as DHBs, "as the Covid recovery allows", the party said.
Little says the Covid-19 pandemic has particularly highlighted the importance of the work of people in the community, but they are not getting what they deserved.
"We can do a lot better at lifting wages and easing financial stress for hard-working New Zealanders."
Economic development spokesperson Phil Twyford says contracted employees help everyone to do their jobs.
"Paying contracted workers a Living Wage will be a great boost to their household incomes and improve life for them and their families. This money will be spent back in the community, meaning it will benefit the wider economy at the same time."
The party expects the policy would cost $18 million per year for cleaners, caterers and security guards once fully rolled out.
The Living Wage is currently $22.10 per hour and is calculated independently each year by the New Zealand Family Centre Social Policy Unit, taking into account basic expenses such as food, transport, housing and childcare.