Proposing to reduce rules 'that are redundant or unnecessary, duplicate content, repeat statutory and regulatory requirements or have never been applied in practice'
The New Zealand government wants to remove the requirement for agencies to pay the living wage for some workers as part of its proposed changes to procurement rules.
Economic Growth Minister Nicola Willis announced that the government wants to cut down the 71 rules that agencies must follow when tendering contracts.
"We are proposing to reduce that number to 47 by scrapping rules that are redundant or unnecessary, duplicate content, repeat statutory and regulatory requirements or have never been applied in practice," Willis said in a statement.
Among the requirements eyed for disposal is the requirement for agencies to pay the living wage in contracts for cleaning, catering, and security guard services.
"I know from my conversations with businesspeople that many find the paperwork involved in bidding for government contracts daunting," Willis said. "This will reduce the barriers that smaller and medium-sized New Zealand businesses face bidding for government contracts."
The 2024/25 Living Wage rate in New Zealand is currently at $27.80, according to the Living Wage Movement, which opposed the government's proposal.
"Our position is clear – this procurement rule must not be scrapped," said Gina Lockyer, Executive Director of the movement, in a statement. "It's a practical way for the government to improve lives and show these workers that they are valued."
Rachel Mackintosh, national secretary of E tū, also slammed the proposal as cruel.
"It is heartless to consider taking away this important protection for workers, which will categorically mean their lives will become much harder," Mackintosh said in a statement.
According to the secretary, the Living Wage requirement in procurement rules gives workers some much-needed reprieve.
"Proposing to end this support for these workers is frankly abhorrent," she said.
In response to the proposal, the Living Wage Movement has called on NZ First to commit to its election promise of protecting the Living Wage for government-contracted cleaners, security guards, and caterers.
"With government facilities all over the country, the policy is delivering for Kiwis from Kaitaia to Bluff," Lockyer said. "Now is the perfect opportunity for NZ First Ministers to show they're fighting to protect workers in the buildings and facilities they oversee – 'looking after their own backyard,' so to speak."
The government is collecting feedback on its proposal until April 8, after which the Cabinet will review the suggested changes.
