Australia’s wage boost widens gap with New Zealand minimum pay – The Front Page

It means if a Kiwi on minimum wage were to work the same job over the ditch, they’d be getting about $300 extra per week.

New Zealand Council of Trade Unions president Sandra Grey told the Front Page that it’s a credit to the Australian unions that they’ve been able to achieve such a win.

“Also, they’ve worked really hard to get in place the Fair Work Commission, which is the body that does this work on raising the minimum wage and raising wages overall as a result.

“Our minimum wage is set by the Government of the day. They are supposed to take advice, but it’s not independent like the Fair Work Commission.

“It doesn’t have the level of expertise, and it doesn’t bring in the unions and employers to talk about what is needed. So, ours are set very differently. And I think the biggest difference is that you’ve got unions and employers at the table in Australia with Fair Work Commission experts looking at what actually is needed for workers to continue to have decent lives,” she said.

Grey rejects the idea that keeping wages low is good for the economy, arguing instead that it pushes people to seek out better lives in other countries.

“We can afford to do better wages. We can do better by employees. Of course, it does mean for some companies slightly smaller profits. It does mean that the Government has to ensure the tax takes allow for them to pay public servants well.

“We can afford to do it. We just have to make the choice. And what it means, if we actually had a decent minimum wage, and then of course all other wages, you would see better productivity.

“You would see people digging in more at work. Low wages also cost New Zealand dearly because there are about 130,000 New Zealanders on the minimum wage or below it, and those people are having to use food banks, so they’re using charity, or they need tax credits, like the family tax benefits or accommodation supplement.

“We’re having to top up all the time people’s wages just so they can afford to live. That’s costing us lots of money, whereas if we actually tackle the primary problem, which is that our wages are set too low, we would all be so much better off,” she said.

Beyond wages, Australia also offers stronger workplace conditions.

In South Australia, for example, most workers receive 13 weeks’ long service leave after 10 years’ service with an employer.

“We should start by looking at the Employment Relations Act and saying it is no longer protecting workers in the way that it should. We start by saying the whole country has to agree that a system which values workers and values them working together to get good working conditions is a great thing.

“But, this means that we have to have a Government that agrees that inequality is rapidly rising. Thirty percent of food bank use is people who have jobs.

“So these are people who have a wage and still need to use food banks. That is not what they want for Aotearoa.

“How do we address this? One thing is you make sure workers can work together to get good conditions, but that they can engage with employers on making sure we have great places to work and high productivity.

“Because we know when workers feel valued and are able to contribute to their workplace fully, you actually do better as a company.

“We just need a change of attitude in New Zealand and to realise that we can learn a lot from countries that have valued unions, who have valued workers, but also look at the minimum wage not as we’ll just keep them just above the poverty line.

“The minimum wage should allow families to do things like go and visit Nanna and Poppa on the weekend. To have the occasional meal out, and I don’t mean the extravagant flash restaurants, but just be able to go, maybe buy some fish and chips and take them to the beach and sit and eat them.

“These things are out of reach now for ordinary working families, and we’ve got to address that really rapidly,” she said.

Listen to the full episode to hear more about:

The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5pm. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.

You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.