10/09/2025 | Press release | Distributed by Public on 10/08/2025 21:20
NZCTU Te Kauae Kaimahi President Richard Wagstaff is today congratulating the Living Wage Movement and trade unions for their victory in keeping the living wage in government procurement contracts.
"The living wage is set at a level that allows New Zealanders to live a decent life. Decent work and decent wages should be the hallmark of employment in New Zealand," said Wagstaff.
"The previous government recognised this by adding it to the guidelines in 2021. We are delighted that the Government has changed its mind on this, despite its previously stated plans to strip away wage protections.
"It's time that they increased the minimum wage to the living wage so that all workers can have decent incomes.
"Removing the living wage protection in government contracts would have impacted around 5,000 workers. It would have likely cost the government additional money in higher welfare payments and other costs. The only beneficiaries of the proposal were the companies that would have been able to slash wages by $11,336 a year.
"It's great that cabinet changed their mind and decided that cutting the wages of some of the lowest paid workers in the country was not a way to build a more prosperous economy.
"The decision is a demonstration of the organising power of trade unions and the Living Wage Movement. We celebrate their victory and the lasting good it will deliver," said Wagstaff.