Scoop has an Ethical Paywall
Increase to minimum wage unfair
Media release
Increase to minimum wage unfair
“The increase of the minimum wage to $14.25 is unfair given several years of stagnating wages, an economy that is starting to grow, and widespread concerns about how that growth will be shared”, says CTU Economist Bill Rosenberg.
“The minimum wage is the only way other than through the tax and benefit system that the government has to ensure wage and salary earners, and particularly people on low incomes, benefit from a growing economy. A more effective system of collective bargaining would be a much fairer way to spread the economic benefits to the majority of the workforce while reflecting the situation that each industry is in. Instead almost half of employees are getting no wage or salary increases at all. This minimum wage increase goes little distance to addressing the inequalities in society. It is not socially or economically sustainable to have another round of growth that goes mainly to a small minority.”
“Over 100,000 people are on or around the minimum wage at its new level and well over 200,000 would have benefited from an increase to $15.00 according to MBIE figures from 2012. It is therefore an important factor in addressing low wages and inequality,” he says.
The CTU in its submission to the government on the 2013 Minimum Wage Review called for a phased increase in the minimum wage along a planned three-year track. The submission said that the first step should be an increase to $15.50 this year.
Rosenberg pointed out that in five years between 2003 and 2008 the minimum wage was raised by 50% (from $8.00 to $12.00) while the government has raised it by only 12% [$14.00] / 14% [$14.25] in the last five years – only about 1% [$14.00]/ 3% [$14.25] after CPI inflation.
“The government has been saying people should expect wage rises. The minimum wage review was a missed opportunity to ensure that everyone from the lowest paid upwards gets a decent increase after several years of hard times,” said Rosenberg.
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.
Gordon Campbell: On When Racism Comes Disguised As Anti-racism
Brendon McMahon - Local Democracy Reporter: West Coast Swim Spot Testing Clear Of E-coli
Green Party: Government Throws Coal On The Climate Crisis Fire
Labour Party: Public Transport Costs To Double As National Looks At Unaffordable Roading Project Instead
The Treasury: New Paper On A Framework For Assessing The Economic And Fiscal Impacts Of Climate Change
Government: Pet Bonds A Win/Win For Renters And Landlords
Government: New Zealand Condemns Iranian Strikes
