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:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Post-Cab Press Conference: Foreign Buyers Register, TPP And Serco

At a press conference today in Wellington, John Key discussed the foreign buyers register as well as the TPP and Serco. Key was questioned on whether a stamp tax might be used as a tool to deal with foreign buyers. More>>

ALSO:

Lyndon Hood Satire: Serco To Outsource Prison To Public Sector

In response to high-profile failings, multinational omnicorporation Serco will introduce public management in its prison system. Serco's New Zealand manager, speaking on condition of anonymity, has announced plans for managers from the Department of Corrections to run the Mt Eden Correctional Facility. More>>

National Party Conference: Plans To Nudge Immigrants Towards Regions

The Government will introduce a package of immigration measures aimed at improving the spread of workers, skills and investment across New Zealand, Immigration Minister Michael Woodhouse says. More>>

ALSO:

Corrections: Serco Relieved Of Control At Mt Eden Prison, Retains Contract

Multi-national private prison operator Serco has been forced to hand back control of Auckland's Mt Eden remand prison to the Department of Corrections, which has used a 'step-in' clause in its contract with Serco following a string of increasingly serious allegations about contraband, prisoner injuries and a death. More>>

ALSO:

Other Experiments: Failing Charter School Stays Open 'For Kids'

Education Minister Hekia Parata says she has given Te Pumanawa o te Wairua in Northland a chance to continue operating because of her concerns about finding other educational opportunities for its students. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news