Increase In Minimum Wage Will Deny More New Zealanders Work
Increase In Minimum Wage Will Deny More New Zealanders
The Dignity Of Work
Press Release by ACT Leader John
Tuesday, February 26 2013
to increase the minimum wage will see more business failures
and more jobs lost, ACT Leader John Banks said today.
“At a time when National should be getting out of the
way of business, it’s putting greater barriers in
place,” Mr Banks said.
“Small businesses make up 97%
of all enterprise within New Zealand and account for 40% of
our GDP. Most are struggling as they have little to no
bargaining power with suppliers and do not have the capacity
to absorb on-going cost increases.
“A member survey
by Hospitality New Zealand last year found that 48% of
hospitality owner/operators paid themselves less than the
“If employers can’t afford to pay
themselves the minimum wage, how can they be expected to pay
their employees even more?
“The minimum wage increase
will impact most on those who can least afford it -
low-skilled workers. It will price them out of the market,
consigning them to a benefit.
“We have seen this with
the abolition of the youth minimum wage: Statistics New
Zealand released its December quarterly report which put the
youth unemployment rate at 30.9 per cent - the highest rate
for at least 30 years.
“Of course we would all like to
see employees earn higher wages. But arbitrarily raising
the minimum wage via regulation rather than through an
increase in productivity will only result in job losses,”
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