Living wage will devastate many small business

“It will be devastating for many small New Zealand businesses if living wage campaigners get there way,” says Max Whitehead, CEO of Small Business Voice.

Mr Whitehead’s comment comes in response to a report in Monday’s NZ Herald saying that living wage campaigners estimate it now costs $18.80 to feed two adults and two children in New Zealand — 2.1 per up from their original estimate of $18.40 per hour.

“The current minimum wage is $13.75. The suggested $18.80 is a 36 per cent increase in wage costs for business. This would bring down many large businesses and bring down even more small businesses,” says Mr Whitehead.

Mr Whitehead says that many business people work “all hours” and don’t pay themselves the minimum wage, let alone the living wage.

“They sweat about making the wage bill each week. A 36 per cent increase in the wages bill will end some businesses and create unemployment,” he says.

Mr. Whitehead says that 97 per cent 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.”

ends

© Scoop Media