Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Rising Wages Requires Rising Productivity Too

Rising Wages Requires Rising Productivity Too

Source: Business Central

--

Today’s announcement by the Labour-led coalition government that the minimum wage will rise to $17.70 per hour on 1 April next year provides businesses and employers with certainty, according to the Wellington Chamber of Commerce.

"Labour’s coalition agreement with NZ First set a goal of a $20 per hour minimum wage, so Minister Lees-Galloway’s announcement today helps employers by laying out the steps towards that goal," says Chief Executive John Milford.

"Pay rises for low-paid workers is welcome news. But for employers, any cost increase needs to be managed.

"Research shows that any minimum wage increase has a cascading effect on workers paid above the minimum wage too. This particularly hits SMEs who are unable to pass on or manage their costs easily.

"We urge the Government to accelerate productivity-enhancing policies such as investing in strategically important transport networks, freeing up labour supplies to desperate primary industry employers, and raising the quality of tertiary education graduates.

"MBIE’s minimum wage review estimates the employment restraint impact from today’s announcement at 8,000. But Kiwis have already started to see an impact from the significant minimum wage hikes foreshadowed.

"The past four quarters added 6,000 new jobs per month on average, a marked slowdown from the preceding two years when over 10,000 new jobs were added per month on average, despite the currently hot labour market.

"The Government should also re-examine the tax impact on workers. The Minister proudly claimed today’s announcement will mean, ‘an extra $48 a week before tax - enough to make a real difference for working people,’ but unfortunately this $48 is quickly whittled down by tax and abatements.

"Today’s announcement needs to be supported by Government action on productivity and tax reform too."

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Non-Giant Fossil Disoveries: Scientists Discover One Of World’s Oldest Bird Species

At 62 million-years-old, the newly-discovered Protodontopteryx ruthae, is one of the oldest named bird species in the world. It lived in New Zealand soon after the dinosaurs died out. More>>

Rural Employers Keen, Migrants Iffy: Employment Visa Changes Announced

“We are committed to ensuring that businesses are able to get the workers they need to fill critical skills shortages, while encouraging employers and regions to work together on long term workforce planning including supporting New Zealanders with the training they need to fill the gaps,” says Iain Lees-Galloway. More>>

ALSO:

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO:

Oil Scare: Trump Authorises Use Of Emergency Crude Stockpile

The New Zealand dollar fell against the US dollar after President Donald Trump authorised the use of the country's emergency crude stockpile after the weekend attack on Saudi Arabia’s major oil facilities. More>>

ALSO: