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

 


Youth Rates Likely to Take Work from Other Young Workers

Unite Union National Director Mike Treen Says That Youth Rates Are Likely to Take Work Away from Other Young Workers Not Create New Jobs.

Industries that we represent employ tens of thousands of young workers. We have been told by these workers to resist the reintroduction of youth rates because they fear having their hours reduced because cheaper workers can be used instead.

What people forget is that the days of full-time work being the norm is not true for young workers. No one in McDonald's for example (other than managers) has guaranteed hours let alone full time work. So when head office says to managers "cut the labour budget in your store" a simple solution is to trim the hours of workers on higher rates and increase the hours of those on the so-called "starting out wage".

The starting out wage can also apply to 18 & 19 year-olds after 6 months on the dole. Big companies like McDonald's are already getting a subsidy they don't need for employing workers who have been on the dole for six months. Now they can pay them less for six months as well. these workers may already have experience in these or similar jobs yet they are expected to work for 20% less for six months.

This doesn't create work -  it will simply shift it around. That is why we were told by all our McDonald's delegates meetings prior to bargaining this year that the starting out wage was a no go area. We have told all the employers we are negotiating with that hell will freeze over before we sign an agreement containing youth rates.

The simple reason that unemployment has gone up for young people is that the economy went into recession in 2008 and has barely recovered since. Many employers stopped hiring and older workers stayed in their jobs longer. This has created a bottleneck for young people. Cutting their wages won't create new jobs however. It will reduce demand in the economy. New jobs needs a growing economy to produce them. That should be the government's priority not cutting wages and reducing workers bargaining power with their other law changes.


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news