National creates an underclass of young workers
Darien
FENTON
Labour Spokesperson
21 March 2013
MEDIA STATEMENT
National creates an underclass of young workers
The National-led
Government has today made an underclass of young workers and
marginalised their futures, says Darien Fenton, Labour’s
Employment Relations spokesperson.
The Minimum Wage (Starting out Wage) Amendment Bill passed its third reading today with strong opposition from Labour.
“The Bill assumes that cutting wages will create jobs – it won’t,” Darien Fenton said.
“Parliament heard no evidence to support National’s claim that this bill would reduce youth unemployment. The Government’s own advisers at MoBIE have admitted as much, resorting to ‘best guesses’ of the bill’s suggested outcomes because of a lack of information and time to do the work needed.
“What’s even more troubling is the suggestion
from Treasury that sub-minimum wage rates could be applied
to other groups of ‘disadvantaged’ workers, which could
extend to migrants, Māori and Pasifika and those from high
unemployment communities.
“The failed policies of
the 1990’s National Government show that cutting wages
doesn’t create jobs.
“This policy will only add
fuel to the massive gap in pay between New Zealand and
Australian workers and further position the Kiwi economy as
one based on low wages and long hours.
“This bill
will see thousands of cheaper young workers enter the labour
market, with adverse effects on every single worker in New
Zealand. There is no doubt that the availability of cheap
labour will displace older workers, who are not only in the
queues of unemployment, but in the queues of
underemployment.
“The failure of this Government to
give credence to the submissions opposed to this bill shows
a striking arrogance. Under National, workers can expect
wages to be cut further through major changes to employment
laws, expected to hit Parliament soon.
“Labour will
continue to oppose these changes, because we have confidence
in the abilities and talents of all workers. We will build
an economy that provides decent, secure jobs and incomes
where young people have hope and opportunity,” Darien
Fenton.
ENDS