Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Submission On Mimimum Wage Amendment Bill

Round Table Submission On Mimimum Wage Amendment Bill

1. Introduction

1.1 This submission on the Minimum Wage (Abolition of Age Discrimination) Amendment Bill (the bill) is made by the New Zealand Business Roundtable (NZBR), an organisation comprising primarily chief executives of major New Zealand business firms. The purpose of the NZBR is to contribute to the development of sound public policies that reflect overall New Zealand interests.

Executive Summary

The proposal to extend the adult minimum wage to 16 and 17 year-olds may be well-intentioned, but it is likely to adversely affect the employment and training of young workers.

The proposed policy change would raise the cost of hiring young workers, but would do nothing to increase their productivity.

Employers may respond to an increase in minimum wage applicable to 16 and 17 year-olds in a number of ways, including cutting jobs,hiring more highly skilled workers or making ‘compensating’ reductions in training, allowances and other employment benefits for young workers.

Reduced job opportunities would have a near-term impact on young workers, who have little work or life experience and few skills. In addition, the loss of valuable work experience and training opportunities could have a longer-term, and potentially more significant, effect on these workers.

In our view, the bill should be assessed on its impact, not on its ntentions. We recommend that the bill not proceed. If it is to proceed, we recommend that it be modified to limit its impact, either by excluding small employers or by making it apply to young workers only after a certain time in employment (eg one year). At a minimum, the ability to set a lower youth rate should be left in the Minimum Wage Act 1983, even if the youth and adult rates are aligned.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news