Living Wage will devastate many Small Business
Media Release (For immediate release)
Living Wage will devastate many Small Business.
“Labour’s primary candidates’ introduction of the living wage will cause economic disaster for working New Zealanders,” says Max Whitehead, CEO of the Small Business Voice.
Mr. Whitehead says that 97% of New Zealand enterprises employ less than 20 people — mum and dad businesses struggling to keep afloat.
“These are Kiwis who mortgage their homes to have a go at running a small business. They give people in the dole queue a job and hope for the future. If their businesses go well, then you’ll find that employees’ wages, along with job security, will increase too.”
Mr. Whitehead says a 34% wage increase will hit these business’ hard. David Cunliffe and Grant Robertson’s over-generous declaration with “other people’s money” will most certainly bring many of the small businesses down and, ironically, cost jobs.”
The costs will be put back to the consumer; inflation will go up; the Reserve Bank will respond by raising interest rates and, in turn, mortgage rates will go up.
“ The very people this bribe is designed to please will be the ones who suffer. Is this what Labour wants?