Pay rise ought to be commended

Spark is  introducing a benchmark salary above which its staff are paid.

All non-commission full-time staff will earn at least $40,000 a year, and front-line commission employees who earn a lower base salary will earn an average of $42,000.

If compared to the current living wage of $19.80 an hour, $40,000 a year minimum falls short at $19.23 an hour.

Spark general manager of human resources Danielle George said the company wanted to “do the right thing” for its staff and attract the best talent, as well as contribute to turning New Zealand into a higher wage economy. . . 

“We have revised our entire value proposition, exploring how we can best deliver base pay and meaningful benefits, all designed to meet the needs of a very diverse workforce.”

The new Spark pay policy has benefited more than 250 staff who have received pay increases over the past two years to bring them up to the new level. . . 

That ought to be cause for commendation but the Council of Trade Unions’ Richard Wagstaff doesn’t think so:

“Their $40,000 salary that they’re promoting is actually a little under the living wage which doesn’t really inspire too much in terms of fair pay for people.”

Spark says the pay scheme is a commitment to a higher-wage economy, and once you take into account staff benefits, the overall package is better than the living wage.

“We want to do the right thing for our people and to attract the best people to a career in Spark,” says general manager of human resources Danielle George.

“If that sets a standard that encourages others to follow, that’s got to be a good thing for New Zealand.”

Benefits include credit towards Spark products and services, life and income insurance, flexible working arrangements and interest-free loans to buy company shares. . .

Spark is offering more than $4.00 an hour more than the minimum wage which is $15.25.

Paying that is a legal requirement and it’s reviewed each year, taking into account that increasing it could price some people out of jobs and threaten some businesses. The living wage is an artificial construct which takes no account of what’s affordable.

Another union, the PSA is praising three Wellington mayoral candidates who support the living wage:

The PSA held a forum for candidates which was attended by Justin Lester, Jo Coughlan, Helene Ritchie, Keith Johnson, Andy Foster, Nicola Young and Nick Leggett.

Mr Lester, Ms Ritchie and Mr Leggett confirmed they support the Living Wage for all council workers, including those employed through contractors and council-controlled organisations.

“We’re extremely pleased to hear three candidates plan to build on the good work already done by Wellington City Council towards making this a fairer city”, PSA National Secretary Glenn Barclay says.

“The PSA decided to hold this forum to hear from the candidates first-hand about their vision for Wellington – including their stance on local ownership of local services and privatisation.

“Wellington City Council has already taken great strides towards becoming New Zealand’s first accredited Living Wage council since it voted to do so in 2013.
“We know this has the backing of Wellington’s voters – what’s now needed is a mayor and a council that will deliver on the promises and finish the job.”

Do voters really support that and if they do, are they happy to be rated more to pay for it?

Unlike the minimum wage, the living wage takes no account of the value of work being done or the danger that some businesses couldn’t survive if they were forced to pay it.

It’s also based on what a vicar thinks a family of four needs to participate in society which ignores the fact that not everyone has to support a family of four on their wages, and if they do Working For Families would give them a generous top-up if they were on a low wage.

New Zealand isn’t a high-wage economy and that’s a weakness. But the solution is increased productivity and upskilling, not the job-threatening imposition of the so-called living wage.

2 Responses to Pay rise ought to be commended

  1. Rosemary Harris says:

    I wish more people would listen to those who note that a vicar is not qualified to determine what is a living wage, and to the notion that all employers have enough fat in their businesses to be able to just increase the wages/salaries of their workers because said vicar thinks it’s a good idea.
    What will inevitably happen is prices will have to increase to pay for this extra cost – and who pays that in the end? Same workers through increased costs everywhere. And who does it hurt the most? Those on the lower incomes who supposedly we were trying to help in the first place!
    Just a big wheel turning…..

    Rosemary

    Rosemary Harris
    Business Services Manager
    Brent Wheeler Group Limited
    +64 27 286 9969
    +64 3 455 6216
    Website: http://brentwheeler.com
    Blog: http://eye2thelongrun.blogspot.com

  2. yes it’s a total package which is completely lost on mr Richards.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: