30 March 2007

Employers warned not to circumvent minimum wage increase

Employers have been advised by the Green Party not to try and circumvent this year's minimum wage increase as some tried to do last year.

Last year some employers removed service pay and allowances of workers after the minimum wage had overtaken these rates.

"Through my raising of the issue with the Minister of Labour these employers were advised to desist in their actions by the Department of Labour," Green Party Industrial Relations Spokesperson Sue Bradford says.

"Just as paying the minimum wage is a legal obligation for employers, so is paying any add-ons required under collective or individual employment agreements."

The adult minimum wage increases to $11.25 from this Sunday 1 April. On the same day annual holidays are increased from three to four weeks.

The rise in the minimum wage and the introduction of four weeks annual leave have been core aspects of Green Party policy for many years.

"It is our firm expectation that the minimum wage will rise to at least $12.00 per hour this time next year," Ms Bradford says.

An increase to $12.00 per hour "if economic conditions permit" was agreed to in the Labour/Green Party Cooperation Agreement for this Parliamentary term.

"In addition to the increase in the minimum wage, I am also looking forward to the abolition of the discriminatory youth minimum wages through my Private Members Bill currently before Parliament. I am very confident that this Bill will be passed," Ms Bradford says.

ENDS

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