Minimum Wage Not The Only Problem
Today’s increase in the minimum wage is not the only problem facing small businesses, says BusinessNZ.
Chief Executive Kirk Hope says the minimum wage rise that takes effect today is just one of several new obligations looming for small businesses, and they are struggling under the load.
"Many businesses are already finding it hard to pay staff given Covid trading restrictions and the slowing economy.
"In addition, new regulations are coming that will require additional sick leave payments, a new public holiday, contractors facing mandated increased wage costs, and new wage scales for pay equity and fair pay negotiations. All these will add to the cost burden on small businesses.
"Business would support the recommendation by National Economic Development spokesman Todd McClay of a two-year moratorium on these changes. Given the current environment, delaying these expensive regulations would be a huge relief for small businesses."
Mr Hope said the coming regulations had been estimated to cost businesses more than $2 billion, a sum that was not able to be supported in the Covid environment.