CTU MEDIA RELEASE
31 July 2006

Contractors Doing Work For Less Than Minimum Wage Deserve Protections say CTU.

“People doing contract work for less than the minimum wage deserve the full minimum wage protections afforded to ordinary workers,” CTU president Ross Wilson said.

The CTU will support a Members Bill amending the Minimum Wage Act to provide that people doing work under contract for service are paid at a rate at least as favourable to the minimum wage.

“Most contractors in New Zealand would be remunerated at well above the minimum wage,” said Ross Wilson. “For the significant number that aren’t, this Bill would provide protection against them being exploited by companies wanting to unreasonably drive down costs.”

The CTU noted also that the Employment Relations Court and Authority has the ability to investigate the real nature of an employment relationship, despite what the two parties may call it in writing.

“We wonder what a more thorough investigation of the widespread contracting practices in some industries might reveal.”

“Many workers in the creative industries spring to mind here”, Ross Wilson said.

ENDS