A small group of North Otago residents are part of a nationwide mission to implement the living wage for employees in the district.

Mark Smith, Heather Machin and Hazel Agnew presented a submission on the Waitaki District Council Long Term Plan last Tuesday (March 18) on behalf of Living Wage Waitaki.

The group submitted employees in the Waitaki should be paid a living wage, Mark says.

The living wage should not be confused with the minimum wage, which is set by the Government as the minimum hourly rate an adult employee can legally be paid.

The living wage has been established as the hourly rate necessary to provide workers and their families with the basic necessities of life, but is not legally enforced.

The minimum wage is $23.15 and rising to $23.50 on 1 April. The living wage was lifted to $27.80 on 1 September for 2024/25, adjusted from $26 to keep in line with inflation.

Mark says Living Wage Waitaki has made submissions to the council for “whatever we can persuade them to do”.

“But, big picture, we want the living wage for everyone.” 

Heather says the group is hoping to raise people’s awareness.

“You know, it's not fair. Things are not fair, and it wouldn't take very much to make this tiny little thing fair.

“Just throwing a few more bucks at someone per hour gives them that feeling, you know, makes people feel like they're valued more.”

The hospitality industry is an example where a lot of staff are paid minimum wage, she says.

“And then they can't get people to stay.”

Living Wage Waitaki would love the council, as employers, to set a precedent, and has been making submissions on the topic since 2020, so far with no luck, Mark says.

“What we would like, and it's not just this council, it's all councils, is to . . . ideally become an accredited living wage employer, but at least pay the living wage as a minimum.

“Now what you get when you start that, is a chain of people not only doing the right thing, but also it's good for the economy, it's good for employers who want to retain good staff, it's good for reducing staff turnover,” he says. 

Dunedin, Christchurch, and Waimate councils are all living wage employers, as is Environment Canterbury.

If a person receives a living wage, their lives get better, Mark says.

They can make plans for the future, they can “put down roots” and can rent securely or think about buying a home.

“A lot of things aren't a problem anymore,” he says.

“Our own little district, which is a leader in so many ways, and a good place to be - I think it's the centre of the universe - but it's not leading in this, and this is it . . . is Waimate fairer than Waitaki?”

A Waitaki District Council spokesperson told the Waitaki App the council reviews the remuneration of staff on an annual basis, and makes decisions based on a range of factors, including minimum and living wage movements.

“We are currently engaged in collective agreement negotiations so will not be releasing information on wages,” the spokesperson says.

Information gained by Living Wage Waitaki via the Local Government Official Information and Meetings Act (LGOIMA) in August last year showed that 55 council staff were on less than the living wage, but that figure is no longer current, the spokesperson says.

“The stated number of 55 staff is incorrect - as that would equate to one quarter of the workforce at council.”

In correspondence with Living Wage Waitaki between August and November last year, the council estimated a cost of $950,580 - just over a 5% increase on the 2025 budgeted payroll of $18,295,000 - to have all employees on a living wage.

This figure reflects an increase in pay across the entire staff, including those on more than $100,000 per year (46 as of June 2023, according to the Taxpayers’ Union).

The council Information Management Team said this was a “high-level estimate of the potential impact across the organisation”.

“By calculating the average percentage increase required for the affected staff and applying it to the total payroll budget, we aimed to provide a clear and scalable estimate of costs associated with this adjustment, while considering potential flow-on effects on salary relativities.”

The Waitaki App has calculated that for 55 staff (accepting this figure is now lower), assuming they are on the minimum wage of $23.50/hr and working approximately 30hrs/week, to bring them up to the living wage would cost around $385,000.

While it is accepted other salaries will need to increase along the pay scale, Living Wage Waitaki disputes $950k is an accurate reflection of what the costs will actually be.

“We are disappointed that the figure presented to elected members was higher than it needed to be, and saddened that the figure might have unfairly contributed to a negative perception of the Living Wage in general and the viability of it at WDC for elected members,” the group’s written submission to the council read.

The group knows councils are being squeezed when it comes to trying to minimise rates rises, but believe the change can be made.

Mark says studies show people who do not have a lot of money are more likely to spend it.

“Which means that's great for the economy, which is a great way to avoid recession and things like that.” 

Living Wage Waitaki is not only keen for the council to adopt living wage pay rates, but also encourage its contractors to do the same.

While some people will think that’s unreasonable, it is something that happens in other areas of the workforce, Mark says.

“We do that with health and safety regulations. We do that with a lot of other rules, you know, we won't commit a tradie on-site if they're not properly certified. 

“There’s lots of things like that we do to influence partners and contractors and suppliers . . . it’s just part of maintaining a good supply chain.”

The group wants to hear from community members who are keen to join the cause, especially if they are being paid less than the living wage. 

“If you're in faith groups that want a just wage, if you're in community groups, if you're an employer who wants to commit to the living wage.”

The group accepts it can be hard, especially for small-scale retailers to pay the living wage, but say it is doable, and it can help save costs in other areas - such as recruitment. Employees who are happy and feel valued are also more likely to work harder, Heather says. 

“Everybody knows that if you're nice to people, they'll respond to that. 

“We think it's not just morally right, it's also smart,” she says. 

People interested in finding out more about the Living Wage can look online, or contact Mark at [email protected].

“There's a lot of material about how to get involved, what the research is all based on, because it is grounded in research,” he says.

There is also a Living Wage Schools campaign to have central government provide enough funding to schools to pay all contract cleaners, caretakers, canteen staff and groundskeepers the living wage.

Almost all Waitaki schools have been approached to sign a pledge endorsing the campaign, and Ardgowan, Hampden and East Otago High School have signed up.

Some other schools say they already pay it, but are not keen to sign the pledge “for whatever reason”, Mark says. 

“That's okay, that's fine, we will just keep talking.”