Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Starting-out wage will put young people in work


Hon Kate Wilkinson
Minister of Labour

9 October 2012

Starting-out wage will put young people in work

Labour Minister Kate Wilkinson has today confirmed the introduction of a new starting-out wage that will help provide young New Zealanders with more opportunities to get into the workforce.

Speaking at the launch of the Government’s Skilled and Safe Workplaces Progress Report, Ms Wilkinson said the new starting-out wage was the latest in a series of steps to help get more New Zealanders into jobs in the wake of the Global Financial Crisis.

“The new starting-out wage will create demand for young people by giving employers a real incentive to take them on,” Ms Wilkinson says.

The Minimum Wage (Starting-out Wage) Amendment Bill provides for eligible 16- to 19-year-olds to be paid no less than 80 per cent of the minimum wage.

“The new starting-out wage will help some of our youngest and most inexperienced workers get a much-needed foot in the door, in what is currently a tight labour market.

“The starting-out wage was one of National’s 2011 campaign promises, and designed to provide 16- to 19-year-olds with the opportunity to earn money, gain skills and get the work experience they need.”

Three groups will be eligible unless they are training or supervising others:

· 16- and 17-year-olds in their first six months of work with a new employer

· 18- and 19-year-olds entering the workforce after more than six months on benefit

· 16- to 19-year-old workers in a recognised industry training course involving at least 40 credits a year.

Those who are training or supervising other staff must be paid at least the adult minimum wage.

The starting-out wage will be simple for employers to implement, and will apply for a blanket six months after starting work with a new employer.

“The youth minimum wage was abolished in 2008 by Labour in a move that resulted in the loss of up to 9000 jobs,” Ms Wilkinson says.

“The starting-out wage is part of a wider package to help get more young New Zealanders into work or training.

“This Government’s continued focus on getting young people off benefit into work has already seen thousands of young people benefit from subsidised work placements and pre-employment training.”

This includes 17,000 placements for young people through Job Opportunities and Community Max and 2000 through Job Opportunities with Training. A further 3500 young people have been through the Limited Service Volunteers programme.

The Government’s Youth Guarantee scheme has seen $97 million in fees-free tertiary places for 16-and 17-year-olds, with the investment increasing to $127 million by 2016. The scheme is in high demand with 7345 places being taken up in 2012 alone.

This year the Government consolidated the Work and Income employment programmes Job Ops and Straight to Work into the $62 million Job Streams package, a simpler, more flexible business-focused model.

“These opportunities are vital if we are to address long-term benefit dependence, as 90 per cent of 16- and 17-year-olds who leave school and drift are likely to end up on benefits when they turn 18,” Ms Wilkinson says.

”The Government’s 90-day-trial periods are also helping employers provide job opportunities for thousands of workers. The starting-out wage is another initiative to help more young people into jobs,” Ms Wilkinson says.

The starting-out wage is due to come into force from 1 April 2013.


ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Missed Opportunities: Amnesty International Report Card On NZ's UN Role

As New Zealand steps down from its month as President of the Council, Amnesty International has taken the opportunity to review New Zealand’s role on the Council so far and assess their performance and contribution to protecting human rights worldwide. More>>

ALSO:

Prince Charles Get More Jobs: PM Announces Honorary Military Appointments

PM John Key has announced that Her Majesty The Queen has approved the appointment of HRH The Prince of Wales to three honorary positions: Admiral of the Fleet of the Royal New Zealand Navy; Field Marshal, New Zealand Army; Marshal of the Royal New Zealand Air Force. More>>

ALSO:

No TPP Deal: Gordon Campbell On Why We Should Still Oppose Investor-State Dispute Measures

Even in this dark hour for the TPP, the secrecy farce continues... What is left to hide? Every single negotiator went into those talks in Maui knowing exactly where everyone else stood. More>>

REACTION:

Salvation Army On Homelessness: Hard Times In West Auckland

The report details an uncomfortable story of people whose only option is to live an unhealthy, dangerous and damaging street life... The social housing needed by these people is not currently available in sufficient quantity. More social housing is required in the West. More>>

ALSO:

Message For PM: NZ Supports Te Reo Māori – You Should Too

As Māori Language Week celebrations and commemoration of 40 years draws to an end, the Māori Language Commission, Te Taura Whiri i te Reo Māori, is once again hugely encouraged by the widespread support for Māori language from throughout the country ... More>>

ALSO:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
More RSS  RSS News AlertsNews Alerts
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news