Attachment 1

Remuneration and Employment Policy

 

 

Remuneration and Employment Policy (COUNCIL)

 

 

 

 

 

 

 

 

 

 

 

 

 

Division

Chief Executive’s Office

Date created

May 2017

Publication date

When approved by Council

Review period

May 2020

Owner

Bradley Cato

Approved by

Tony Stallinger

 

Version

Author

Date

Description

V 1.0

Bradley Cato

TBC

Approved by Council

V 2.0

Name

DD/MM/YYYY

Reviewed

 

 

Legal framework

This is a remuneration and employment policy pursuant to clause 36A(1)(b) of Schedule 7 of the Local Government  Act 2002.  It sets out a minimum level of remuneration Council will pay its employees, being the Living Wage.

In addition, Council also considers paying the Living Wage to be in line with its obligations to be a good employer.

Definition of Living Wage

The Living Wage is defined as the income necessary to provide workers and their families with the basic necessities of life. It enables workers to live with dignity and participate as active citizens in society.

paying the living wage

Paying the Living Wage helps reduce in-work poverty. From a business perspective, implementing the Living Wage contributes to improving workplace culture[i][ii], productivity, and results in more cost-effective service delivery[iii][iv][v]. Studies have demonstrated that implementing the Living Wage can contribute to improved staff engagement and morale, better staff retention and lower rates of absenteeism[vi] [vii][viii][ix][x][xi][xii]. In turn, this can lead to less disruption and reduced recruitment costs.

Council will pay the Living Wage published by Living Wage Aotearoa New Zealand to staff employed by Council where it can be demonstrated that doing so means that the performance of our functions and services will be the most cost-effective way to provide those services.

Council’s starting point will be the Living Wage calculated by Living Wage Aotearoa New Zealand in 2017.  This will not automatically increase with future Living Wage raises as it will be necessary to decide annual increases (if any) within the context of Council budgets and projections.

Review

This Policy must be reviewed at intervals of no more than three years.

 

 

 

[1] Haar, J., Carr, S., Parker, J., Arrowsmith, J., & Jones, H. A Longitudinal Study of Fair Pay and Outcomes in New Zealand: The Role of a Living Wage Workplace. (To be published 2017) https://www.buira.org/assets/images/conferences/2016/programme.pdf pp.82-84.

[1] Matthew Dutton, Robert Raeside, Tiffany Mazza, Tao Chen, Evaluating the Economic Impact of the Glasgow Living Wage, 2014.

[1] Jane Parker, Lindsay Eastgate, James Arrowsmith, and Stuart Carr, The Logic of ‘Going Living Wage’: A firm-level analysis, (2016)

[1] J. Arrowsmith, L. Eastgate, C. Yao, S. Carr, H. Jones, Exploring corporate and employee rationales for ‘going Living Wage’, British Universities Industrial Relations conference paper, University of Leeds, June – July 2016. https://www.buira.org/assets/images/conferences/2016/programme.pdf pp.156-158.

[1] Stuart C. Carr, Jane Parker, James Arrowsmith, Paul Watters and Harvey Jones, Can a ‘living wage’ springboard human capability? An exploratory study from New Zealand, Labour and Industry 2016, Vol.26. No.1.

[1] Flint, E., Cummins, S. and Wills, J., (2014). Investigating the effect of the London living wage on the psychological wellbeing of low-wage service sector employees: a feasibility study. Journal of Public Health, 36: 187-193.  http://jpubhealth.oxfordjournals.org/content/early/2013/09/05/pubmed.fdt093.full.pdf+html

[1] J. Wills and B. Linneker, The costs and benefits of the London Living Wage, (Queen Mary University of London, October 2012)

[1] Niedt, G. Ruiters, D. Wise, and E. Schoenberger, The effects of the living wage in Baltimore, p.6. Working Paper No.119, (Economic Policy Institute, February 1999). http://epi.3cdn.net/63b7cb4cbcf2f33b2d_w9m6bnks7.pdf 

[1] The London Living wage, pp.19-21. Introducing the Living Wage attracts better job applicants.  http://www.geog.qmul.ac.uk/livingwage/pdf/Livingwagecostsandbenefits.pdf

[1] E. Brown, A. Newman, and S. Blair, The Difference a Living Wage Makes, Paper to the Population Health Conference 2014, p.2. (2014)

[1] Neumark, M. Thompson, and L. Koyle, The effects of living wage laws on low-wage workers and low-income families: What do we know now? p.5. IZA Journal of Labor Policy 2012 1:11.

[1] A short history of the living wage in the UK, http://www.geog.qmul.ac.uk/livingwage/history/index.html Source quoted is: Metcalf, David (2007) Why has the British national minimum wage had little or no impact on employment? CEPDP, 781. Centre for Economic Performance, London School of Economics and Political Science, London.

 

[1] (Andrew J Elmore, Living Wage Laws & Communities: Smarter Economic Development, Lower than Expected Costs, Brennan Center for Justice, New York, 2003, p. 2).

[1] (http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11830515)


[i] Haar, J., Carr, S., Parker, J., Arrowsmith, J., & Jones, H. A Longitudinal Study of Fair Pay and Outcomes in New Zealand: The Role of a Living Wage Workplace. (To be published 2017) https://www.buira.org/assets/images/conferences/2016/programme.pdf pp.82-84.

[ii] Matthew Dutton, Robert Raeside, Tiffany Mazza, Tao Chen, Evaluating the Economic Impact of the Glasgow Living Wage, 2014.

[iii] Jane Parker, Lindsay Eastgate, James Arrowsmith, and Stuart Carr, The Logic of ‘Going Living Wage’: A firm-level analysis, (2016)

[iv] J. Arrowsmith, L. Eastgate, C. Yao, S. Carr, H. Jones, Exploring corporate and employee rationales for ‘going Living Wage’, British Universities Industrial Relations conference paper, University of Leeds, June – July 2016. https://www.buira.org/assets/images/conferences/2016/programme.pdf pp.156-158.

[v] Stuart C. Carr, Jane Parker, James Arrowsmith, Paul Watters and Harvey Jones, Can a ‘living wage’ springboard human capability? An exploratory study from New Zealand, Labour and Industry 2016, Vol.26. No.1.

[vi] Flint, E., Cummins, S. and Wills, J., (2014). Investigating the effect of the London living wage on the psychological wellbeing of low-wage service sector employees: a feasibility study. Journal of Public Health, 36: 187-193.  http://jpubhealth.oxfordjournals.org/content/early/2013/09/05/pubmed.fdt093.full.pdf+html

[vii] J. Wills and B. Linneker, The costs and benefits of the London Living Wage, (Queen Mary University of London, October 2012)

[viii] Niedt, G. Ruiters, D. Wise, and E. Schoenberger, The effects of the living wage in Baltimore, p.6. Working Paper No.119, (Economic Policy Institute, February 1999). http://epi.3cdn.net/63b7cb4cbcf2f33b2d_w9m6bnks7.pdf 

[ix] The London Living wage, pp.19-21. Introducing the Living Wage attracts better job applicants.  http://www.geog.qmul.ac.uk/livingwage/pdf/Livingwagecostsandbenefits.pdf

[x] E. Brown, A. Newman, and S. Blair, The Difference a Living Wage Makes, Paper to the Population Health Conference 2014, p.2. (2014)

[xi] Neumark, M. Thompson, and L. Koyle, The effects of living wage laws on low-wage workers and low-income families: What do we know now? p.5. IZA Journal of Labor Policy 2012 1:11.

[xii] A short history of the living wage in the UK, http://www.geog.qmul.ac.uk/livingwage/history/index.html Source quoted is: Metcalf, David (2007) Why has the British national minimum wage had little or no impact on employment? CEPDP, 781. Centre for Economic Performance, London School of Economics and Political Science, London.