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Minimum wage increase will cost jobs, hurt SMEs

18 December 2019

Minimum wage increase will cost jobs, hurt SMEs

While today’s increase in the minimum wage will be good for some, it will cost jobs and impose large costs for small businesses throughout the country, National’s Workplace Relations and Safety spokesperson Todd McClay says.

“The Government’s own official advice shows increases to the minimum wage of this magnitude will stop thousands of new jobs being created.

“It means employers are less likely to create jobs, less likely to invest in training and development and less likely to replace workers when they leave. This will take away opportunities for New Zealanders.

“New Zealand already has one of the highest minimum wages in the world and today’s change will impose significantly higher costs for businesses who will have no choice but to increase their prices. This will further add to the rising cost of living and disproportionality effect people on low incomes.

“New Zealanders are already feeling the effects of high petrol prices and increasing rents, removing opportunities for work is only going to make matters worse.

“National is committed to securing high wages for workers, that’s why we increased the minimum wage every year in Government. However we believe the minimum wage should go up in a balanced way that doesn’t go too far, too fast.”

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