Wages for Hours, not Bills

A 3News story featuring James Sleep’s opposition to youth minimum wages doesn’t add up and shows he’s on a different planet.

In 2011, Department of Labour released a study focussing on the impact of youth minimum wage reform in 2008 and found that there was some effect on employment prospects of 16 and 17 year olds.

A comparison with youth minimum wage repeal in 2001 (in the same study) showed that there was an increase in employment prospects for this age group. The report also suggests that those most affected were students combining part-time work with study.

ACT on Campus President, Taylor Warwood said “The goal of a youth minimum wage is to give young people a chance to acquire skills, not to deflate wages.”

“And we have to look at what the legislation going through Parliament will do, when it is passed. Those under the age of 18 will have a lower minimum wage which means their skills disadvantage won’t hurt their chances of being employed and increases their chances of gaining skills when they become adults.”

“But it also gives employers an opportunity to provide a way out of the welfare trap for young people.”

“We also recognise that wages should be higher, because living costs in New Zealand are quite high. The best way to mitigate this is to strengthen the economy by lowering the barriers to achievement in New Zealand, and finding ways of increasing skills without raising taxes. A stronger economy has more value in it to contribute to better wages”

“In short, we cannot legislate prosperity as Labour leader David Shearer suggests in the story, nor fund it with money New Zealanders already had in the first place. We should strengthen the economy and let the tide lift all boats.”

Vice President Guy McCallum added, “James also forgets that bills are paid with wages, and wages are paid for hours worked - not bills to pay.”

“Employers should be fair with what wages they pay, certainly, but they can’t be treated like cash machines by the ambitious activists of the left.”

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