Brunch, Business and the Living Wage
A Conversation That Matters
It’s a sunny Saturday at the local café, not quite warm enough to sit outside, quiet enough to talk shop. Alex, a small business owner, has already beaten John to their usual table.
“Every second post on my feed is about the Living Wage,” Alex says, sliding into his chair. “Feels like if I’m not on board, I’m some kind of corporate villain. But no one’s talking about how it’s actually supposed to work for a business like mine.”
John stirs his coffee and nods. “You’re right. It’s a tough conversation and it’s being handled too often as if it’s just about values. But this has to make sense financially, too. Otherwise, it's just pressure without a plan.”
Fact #1 A Snapshot of NZ's Reality
40% of children in poverty in New Zealand have a parent working full-time or self-employed.
Living costs are outpacing wages - especially in low-pay sectors like hospitality, aged care, and cleaning.
The Living Wage Movement Aotearoa NZ defines a Living Wage as the income necessary to meet basic needs and participate in society, significantly higher than the minimum wage.
Source: Stats NZ, Living Wage Aotearoa, CPAG
Alex sighs. “It’s not that I don’t want to do the right thing. My staff work hard. I just can’t afford to raise wages across the board without creating a domino effect.”
He lists his concerns: tight margins, wage compression, price sensitivity, the admin hassle and maybe most honestly, uncertainty.
“I’ve run the numbers before. Even a $2–$3 hourly bump eats thousands a year. If I raise one role, the rest want matching increases. That’s not manageable unless something changes.”
John listens, not to respond, but to understand.
“You’re not wrong. Those are real constraints and that’s why change needs to be supported, structured and paced - not imposed overnight.”
Fact #2 What’s Worked Internationally — UK Living Wage Foundation
The UK’s Living Wage Foundation is a voluntary accreditation model adopted by over 14,000 employers, from giants like IKEA and Aviva to small cafés and trades firms.
90% of businesses reported improved morale
Two-thirds saw better retention and easier recruitment
86% reported enhanced public reputation
Most found the shift more manageable than expected, especially when phased in and paired with smarter business practices.
Source: GLA Economics, Living Wage Foundation UK, Queen Mary University
“In New Zealand,” John continues, “some businesses have already made the move. AUT’s research in 2020 found that employers who paid the Living Wage saw stronger team cohesion, fewer sick days and better productivity.”
“But the key thing,” John says, “is how they did it. They started small. They planned. They measured.”
Fact #3 Canadian Case Studies — Vancouver and Beyond
In Vancouver, SMEs that adopted Living Wage policies reported:
Lower absenteeism
Stronger team morale
A boost in customer loyalty due to ethical branding
Many didn’t do it out of ideology. They did it to stabilise operations — and found it cost-neutral or even cost-positive in the long run.
Source: Living Wage for Families BC
Alex looks intrigued, not convinced yet, but curious.
“So where do I even start? I’ve got a dozen other fires burning already.”
John smiles. “Start with one thing - visibility. Run your numbers. Find the real cost gap, not the imagined one. Then you can start designing a pathway.”
He sketches a few points on the napkin between them -
Do a cost analysis Identify the shortfall between current wages and the Living Wage.
Choose a pilot Try it with one team or a few roles. Track what changes - morale, absenteeism, retention.
Look for hidden value Are there inefficiencies, rework, or turnover costs you’re not accounting for?
Engage the team Invite them into the process. Ask: how do we grow enough to support this together?
Fact #4 U.S. Experience — San Francisco & Boston
San Francisco’s Living Wage ordinance (targeted at city contractors) showed no significant job loss — instead, workers had improved stability, health outcomes, and engagement.
In Boston, Living Wage city contractors saw higher service quality, while employees reported improved mental wellbeing.
Source: UC Berkeley Labor Center, UMass Amherst
Alex finishes his coffee and leans back. “Okay. I’m not promising anything. But I might open the books this week and see what’s possible.”
John nods. “That’s the start. This isn’t about flipping a switch. It’s about building something better, for your business and the people who power it.”
They sit quietly for a moment as the sun warms the pavement and the café buzzes around them.
Sometimes change starts not with a plan, but with a conversation - one that acknowledges the risks, respects the pressure and still dares to look for a better way forward.
Sources and Research
Living Wage Foundation UK – https://www.livingwage.org.uk
AUT Living Wage Research NZ (2020) – https://workresearch.aut.ac.nz
GLA Economics Report – London.gov.uk
Living Wage for Families Canada – https://www.livingwageforfamilies.ca
UC Berkeley Living Wage Research – https://irle.berkeley.edu
Massachusetts PERI Research (Boston Study) – https://peri.umass.edu