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Will 'youth rates' help to lower unemployment?

Digital image / P.K. Stowers
Digital image / P.K. Stowers

Workers' unions have been quick to write off the Government's plan for a new, low, starting pay, while business leaders say it will help create jobs.

Labour Minister Kate Wilkinson said the "starting-out" wage of $10.80 an hour would allow employers to pay eligible 16- to 19-year-olds no less than 80 per cent of the minimum wage, which is $13.50 an hour.

Ms Wilkinson said the introduction of the new wage, from April 1 next year, would help provide young New Zealanders with more opportunities to get into the workforce.

Food Service and Food Workers Union national secretary John Ryall said the Government's plan to cut pay for 16- to 19-year-olds would not create jobs or give young people any skills.

Will 'youth rates' help to lower unemployment? Here is the latest selection of Your Views:

Featured comments

"Making kids $3 cheaper than adults doesn't mean employers will suddenly hire two people instead of one - all it means is their overheads decrease!"

Doug Matthews

"Its only for six months for goodness sake. The left wing are sooo ignorant."

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