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Government to cut minimum wages?
Government to cut minimum wages?
The refusal today by Health Minister Tony Ryall to rule out amending the Minimum Wage Act is a very worrying signal that minimum wages could be cut in this country, CTU President Helen Kelly said. The Minister refused to rule out the move in the event of failure of the IHC and Crown appeal against the case successfully taken by IHC Home Care workers to be paid proper wages when working overnight.
The case established correctly that the workers should be paid at least the minimum wage, currently $12.75 per hour, for each hour they work. The Crown are arguing that if a worker earns a higher amount for other hours worked (e.g. time and a half for statutory holidays) then the extra can be offset against this rate and some hours could be worked for less than $12.75 per hour.
The CTU estimates that up to 800,000 workers in New Zealand work for rates within a couple of dollars of the minimum wage. “For them this will prove a disaster,” said Helen Kelly. “Workers that are paid a piece-rate (fruit pickers for example), could find themselves working hours for nothing if they successfully pick good amounts of fruit during particular times that they work.”
“The Government is wrong in suggesting that the decision of the court as it stands will see salaried workers on high pay demanding the minimum wage for each hour over 40 worked. Employment agreements for salaried workers set out the hours required for the salary to be earned. No claim could be made for hours included in those agreements. Certainly, where a worker is contracted to work long hours for a salary that equates to less than the minimum wage per hour contracted for, there may be a claim - and so there should be - but for higher paid salaried workers there is no claim.”
The CTU is calling on the Government to rule out any change to the Minimum Wage Act to put workers’ minds at rest. “Without ruling it out, and on the basis of the Government position in the Court case, changes to the Act seem high on their mind. This will mean workers working for less than $12.75 per hour in this country and will be a disaster for low income workers,” said Kelly.
ENDS
New Zealand Council of Trade Unions
Te Kauae Kaimahi
The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.
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