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Darien Fenton wrong

Darien Fenton wrong

Labour MP Darien Fenton is wrong in claiming business wants a minimum wage of $7 an hour. No suggestions for that amount have ever been made.

BusinessNZ has never called for the minimum wage to be reduced.

New Zealand business wants to see a higher average wage, through a stronger economy based on higher skills, innovation and productivity.

With a higher average wage, business would expect to see the minimum wage, as a percentage of the average wage, set appropriately.

Too high a minimum wage as a percentage of the average wage stops the economy from growing and reduces young people’s chances of gaining employment.

New Zealand’s minimum wage as a percentage of the average wage is the highest in the world, at 51 percent.

Since 1999 there have been extensive increases in the New Zealand minimum wage rate, increasing faster than the average wage.


BusinessNZ Chief Executive Phil O’Reilly says the need is for a stronger economy, and a minimum wage set at 25 percent of a much higher average wage rate over time.

Ends

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