“Focus on improving skills and paying what a job is worth is best way for businesses to recognise their responsibility to the communities in which they operate – not paying a ‘subjective and artificial’ Living Wage.”, writes Michael Barnett, head of the Auckland Chamber of Commerce.
All businesses, including councils hire on merit, so paying a higher rate without asking for better performance is not sound business practice. Private sector businesses would soon go out of business, but councils take the easy option – they simply pass the cost on to rate payers.
“That’s why the ‘living wage’ is not good business, or good for business. Most businesses recognise this. “It is of concern, however, that Auckland Council and others are leading the charge on this flawed concept – they don’t face up to ‘real business’ price-cost pressures like other businesses do, and instead are expedient in exploiting the revenue they receive from ratepayers,” said Mr Barnett.
The $10,000 difference between the just under $32,000/year minimum wage and new $42,000/year living wage is a significant extra ‘social’ cost to make up.
Of course, the Auckland Chamber recognises that low wages can make it difficult for workers and their families. But Government welfare policies exist to address this, including the setting of a ‘minimum’ wage to prevent unscrupulous employers paying too little. Read more »
Then welcome to the dole queue. When faced with ever increasing wage bills with little or no improvement in productivity it gets to a point where employers simply replace workers altogether with machines.
It’s official: McDonald’s says that every one of its 14,000 stores nationwide will be replacing cashiers with automated touch-screen kiosks. They’re starting with stores where minimum-wage laws mandate the highest rates, such as Florida, New York, San Francisco, Boston, Chicago, Washington, D.C., and Seattle.
According to CNNMoney:
So the fast food giant is rolling out self-order kiosks, mobile pay options, an updated interior design, even table service. The changes are already starting to show up at locations in Florida, New York and Southern California, where 500 restaurants have been updated. Restaurants in San Francisco, Boston, Chicago, D.C. and Seattle will get upgrades in early 2017. Now, McDonald’s loyalists will be able to place their customized order on a touch screen, take a seat and have their meal brought right over. Next year, they’ll even have the option of mobile ordering.
That means that, eventually, more than 20 million customers every day will place their own orders at a kiosk or on a mobile device and then have them delivered by a human to their table. And it’s just a matter of time before those humans will be replaced by machines as well. Read more »
In March of this year Andrew Little said this:
Labour leader Andrew Little said the government was creating a generation of “working poor”.
“The minimum wage is still too low for the many workers who are dependent on it.”
Mr Little said the rise of $18 a week in take-home pay would only just cover rent rises.
And the head of the CTU said this:
Council of Trades Unions president Richard Wagstaff said the “miniscule” increases to the minimum wage would leave people treading water.
“We need to do a real jolt so the people on the minimum wage are actually earning enough to actually live properly.”
Lobby group Living Wage Aotearoa estimates $19.80 per hour is needed to maintain a decent standard of living.
Stuff you rate payers. Whether they deserve it or not, everyone at Auckland Council will now get an arbitrary living wage.
E tu has welcomed the swift assurance of Auckland’s new Mayor that Auckland Council can easily afford to pay the Living Wage to most of its staff.
But the union says this must also include the many workers employed by contractors to provide council services.
Phil Goff says he can find the estimated $4.1 million dollars to pay the Living Wage to directly employed and CCO staff.
E tu’s Assistant National Secretary, John Ryall says Auckland has elected a Living Wage mayor, and a majority Living Wage council, thanks to a new North Shore councillor.
“This is great news for the staff who will get this extra money,” says John.
“Phil’s commitment is clear, and with majority council support, this is a real win for the many campaigners and voters who supported Living Wage candidates.”
Want to know why automation is replacing menial jobs?
Labour want to know…as they have their Ten Big bumper sticker slogans and attempt to find out why it is that automation is going to replace every job.
They should read the Wall Street Journal article about restaurant automation and wonder no more about why it is people are being replaced.
Consumer preferences, reduced technology costs and government policies that increase labor costs are driving a trend toward automation in the restaurant business. If you make something more convenient and less expensive, it tends to catch on.
As recently as the 1960s, gas-station employees would rush to fill your car’s tank, wash the windows, check the oil and put air in the tires. Telephone operators made your long-distance calls and bank tellers cashed your checks. Those jobs now are either gone or greatly diminished.
Today, we reduce jobs whenever we shop on Amazon instead of our local retail outlet, use an Uber app rather than calling a cab dispatcher, order a pizza online, use an airport kiosk to print boarding passes, or scan groceries. Each of these changes in behavior has increased convenience and reduced labor costs—and competitive businesses pass the savings to their customers.
In the restaurant business, the increasing impact of technology doesn’t mean that a robot will soon roll up to your table and say, “Hi, I’m Trudi4783. I’ll be your automated server today.” But technology can replace certain functions. Touch screens are already transforming the way food is ordered in many restaurants.
In late 2013, Chili’s and Applebee’s announced that they were installing more than 100,000 tableside tablets at their restaurants across the country, allowing customers to order and pay their bill without ever talking to a waiter. The companies were soon followed by Buffalo Wild Wings, Panera Bread, Olive Garden and dozens of others. This means fewer servers covering more tables. Quick-service restaurant chains are also testing touch-screen ordering.
The Wellington Chamber of Commerce have shown abject cowardice in withdrawing legal action against the Wellington City Council.
Wellington Chamber of Commerce has backtracked on threats to take Wellington City Council to court over its living wage policy.
The council, which has been paying its own staff a living wage since 2013, voted in October to require its security services contractors do the same.
The chamber announced it was concerned about the ability of the council to do that under the Local Government Act and sought a judicial review of the council’s living wage policy.
In a joint statement issued on Wednesday, both parties said legal proceedings had been halted and they were working towards finding a way to pay contractors the living wage that was acceptable to the council and the chamber. Read more »
The other day Martyn Bradbury declared :
The living wage is $19.80 – let’s push for $20. The arguments for increasing it outweigh the negative. People spend that money directly into their neighbourhoods, small business will benefit from more local spending – large corporations will get grumpy. But screw them.
This demonstrates the retarded spasticity of the left wing when it comes to simple economics.
But it isn’t just this fool. It seems there are plenty of others pushing for the minimum wage to become the highest in the OECD.
Earlier this week, the government raised the minimum wage by 50 cents, and the country’s living wage movement announced a new rate of $19.80.
In a debate on RNZ’s Sunday Morning programme, Eric Crampton, who is an economist and the director of the New Zealand Initiative, said among developed countries New Zealand already had the highest minimum wage in relation to the average wage.
Mr Crampton said it was unreasonable to set the minimum wage high enough for people to live off it without any subsidy. Read more »
Harré co-owns an Auckland restaurant, O’Sarracino, which is working towards paying a living wage to its staff.
Two years ago a newspaper reported…
Ms Harre’s restaurant, O’Sarracino in Mt Eden Rd, hosted the announcement of the accreditation system yesterday but still pays two employees below $18.40. Another director of the business, Maurizio Piglia, said those two would be paid the new $18.80 rate by June or July “if the business environment supports us”.
Very pleased to see that the Wellington Chamber of Commerce is seeking a judicial review of the council’s dopey living wage rules.
It’s about time that dud councillors were held personally responsible for their dopey decisions.
Wellington City Council’s decision to pay its security contractors a living wage is headed to the High Court, and ratepayers could end up paying some of the legal bills.
The Wellington Chamber of Commerce announced on Friday that it would seek a judicial review of the council’s living wage policy.
The council, which has been paying its own staff a living wage since 2013, voted 9-6 in October to require its security services contractors do the same.
The living wage is the hourly rate a worker needs to participate as an active citizen in the community. That amount is currently $19.25 per hour but the council’s interpretation is $18.55.
Bumping up the wages of all security guards, noise control officers and cash collection staff was estimated to cost the council an extra $1.7 million on top of the price of the seven-year contract. Read more »
Some people have more money than sense. And the result is, they end up with less money and no sense.
Auckland’s night-time revellers have spoken – there’s no room for a dry bar in the city.
Tap Bar, the country’s first alcohol-free bar, has shut its doors after only five weeks of business on Karangahape Rd.
Co-owner Grady Elliott said he was applying for a liquor licence and would relaunch as a nightclub.
“We gave it a shot and Auckland drinking culture just didn’t tie in with the dry bar. No one showed up,” he said.
Tap Bar, which stands for The After Party, charged a $15 entry fee and non-alcoholic drink prices started at $5.
It opened at midnight and hoped to attract customers spilling out of neighbouring nightclubs at 4am closing.
Elliott said the bar had a few customers but they drank water and little money was passed over the counter.
“We took it by the balls and gave it a punt. We knew it could have gone either way and we were prepared for it,” he said.
Actually, you got punted in the balls. Stupid idiots deserve that. Like that idiot that decided to pay all his staff at least a “living wage” of $70,000 per year discovering his business was no longer economic to run.
Take note, and never go into business with people like that again. And if you do, make sure you take all the money up front.