Wednesday Jan 27, 2010
The minimum wage will go up by 25 cents an hour to $12.75, the Government announced today.
Labour Minister Kate Wilkinson said the increase was in line with the Consumer Price Index.
The training and new entrants’ minimum wages will increase from $10 to $10.20
\”The Government is focused on the need to find a balance between protecting jobs and ensuring a fair wage.
\”We do not want to see workers priced out of the market, but we are confident that a 25c increase, in line with inflation, will not overly harm or discourage businesses from taking on new staff.
\”The Government is working hard to provide the right environment for economic growth and ensuring workers can maintain the buying power of their wages is part of that,\” Ms Wilkinson said.
But Council of Trade Unions President Helen Kelly labelled the minimum wage rise as \”mean\”.
\”If this is the rate at which we intend to catch up with Australian wages then we will never get there,\” she said.
\”The increase to $12.75 from 1 April is an annual increase of only 2 per cent. That is barely enough to compensate for inflation, and may not be enough even for that.\”
\”This decision will leave low paid workers even further behind. We need to be reducing income inequalities not increasing them.\”
The new minimum wage rate will come into effect on April 1.
There had been pressure to increase the rate to $15 but Prime Minister John Key earlier ruled that out.
Labour MP Trevor Mallard this morning said he was putting up a member’s bill seeking to increase the minimum wage to $15.
Mr Mallard said his bill sought the increase spread over two years, up to $13.75 from March and then $15 next March.
\”If the bill is not drawn from the ballot by March 31 this year then I will resubmit it so that it takes effect from March 31, 2011 at the $15 rate.\”
Last week, the New Zealand Herald surveyed 2300 people on the issue, with the majority supporting an increase to $15 – 3.5 per cent of respondents said the minimum should be lower than the current $12.50 an hour, 30.5 per cent thought it should remain unchanged, 61 per cent thought it should go up and 5 per cent did not have an opinion.
Mr Mallard said there were equity and productivity arguments supporting the increase.
Raising the minimum wage would assist the Government’s goal of lifting productivity and closing the wage gap with Australia, he said.
Every year the Minister of Labour reviews the minimum wage, received by about 100,000 workers.
Members’ bills are considered fortnightly on a Wednesday.
– NZPA, NZ HERALD STAFF
Reference: http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10622596