The Tauranga City Council has missed a chance to set an example by rejecting a proposal to pay its staff the living wage, the Public Service Association says.
The council this week voted against paying its staff at least $19.25 an hour, which would cost it about $3.2 million a year.
The Wellington City Council last year voted to pay its staff the living wage.
PSA national secretary Glenn Barclay said he was deeply disappointed that Wellington's example had not been followed, but was optimistic that more councils will opt to pay the living wage.