Two unions representing low-paid workers in Northland have described a 50c-an-hour minimum wage increase as a joke and well short of what was necessary to lift poor workers out of poverty.
Labour Minister Kate Wilkinson last week announced the minimum wage would increase from $13 to $13.50 an hour, while the training and new entrants' minimum wage would increase from $10.40 to $10.80 an hour from April 1.
She said the minimum wage increase equated to about $20 a week for fulltime workers and struck the right balance between protecting low-paid workers and ensuring jobs were not lost.
"The [Labour] department's analysis suggested that if we put it up to $15, that could result in the loss of 5000 to 6000 jobs," the minister said.
"If you look at the hospitality industry and retail, they're the ones that are most affected by it and they will just employ less people and not take people on."
However, the general consensus among workers' lobby groups was that a 50c hourly pay rise was simply not enough.
"Government does not realise that by giving more, people will spend more. To kickstart the economy, we need wages to rise to $15 an hour," said Gary Hetherington of First Union, formerly the National Distribution Union.
He said the Government's lack of commitment to bringing lower-paid workers out of poverty was appalling.
Northland workers, Mr Hetherington said, were the most affected as employers kept wages down, knowing full well that jobs were scarce.
The Amalgamated Workers' Union said a 50c hourly increase was far from enough.
"The only people getting a 50c increase are those on $13 an hour. Those now getting $12 an hour will get an increase of $1.50, but those earning more than $13.50 won't get anything," union secretary Ray Bianchi said.
"It really is a joke. By the time you pay tax, that 50c will dissipate very quickly," he said.
Whangarei Child Poverty Action Group spokeswoman Ngaire Rae said that while any increase in the minimum wage was great, it had to be sufficient for low-income families to meet a rise in cost of living.
"A further increase should be looked at. Children of low-income parents still live in poverty because our wage rate is really low," she said.
Northland Chamber of Commerce chief executive officer Tony Collins said that in an ideal world an increase to $15 would be a marked improvement.
"But in Northland we have a high percentage of small businesses and they have been going through very tough times over the past two years."
He said most comments he had read on the subject indicated increasing the minimum wage beyond 50c an hour would lead to job losses.