Xpert Roofing & Construction Limited owner Henry Cooper said minimum wage increases mean he has to pay unskilled workers higher while he struggles to find skilled workers.
Xpert Roofing & Construction Limited owner Henry Cooper said minimum wage increases mean he has to pay unskilled workers higher while he struggles to find skilled workers.
Northland businesses say they are struggling to keep up with the minimum wage increases as the Government chases rising inflation.
On April 1, the minimum wage increased by $1.20 to $21.20 per hour - a 6 per cent increase in line with the 5.9 per cent annual rise in theconsumer price index in the December 2021 quarter.
Despite the increase, those earning minimum wage will still not make enough to "pay for the necessities of life" as the New Zealand Living Wage increased to $23.65 per hour on April 1.
Xpert Roofing & Construction Limited owner Henry Cooper, a small business owner in Whangārei, had "mixed thoughts" about the wage increase.
Cooper pays all of his workers above minimum wage because he knows the work is "hard".
He said as lower wages increase it becomes more difficult to find employees in an already tough market.
"It's hard enough at the moment finding anyone that is skilled throughout all trades and putting the minimum wage up [means] getting someone that isn't skilled will be harder."
Cooper said he had lost employees partially because of the minimum wage rise as other work became more appealing.
"[They would say] I could just go work at McDonald's and get similar money instead of busting my a*** on a hot roof in the middle of summer, and they'd been with us for three years so that's saying a lot.
"You spend a bit of time getting somebody up to a certain level, then they leave and you're having to start again, but the wage has gone up, it's a can't-win situation sometimes."
Cooper said increasing wages where he can and putting his businesses prices up were "pretty much all [I] can do".
But he fears a loss of competitiveness with higher prices.
"We're a small business, and there are many businesses like us that would struggle to put prices up too much.
"Bigger companies ... can take that cut, they can afford to throw a bit more money around, whereas us little guys [can't]."
Cooper recognised roofing was a hard job requiring more skill than people think. He fears for his fellow businesses as they try to keep pace with trade shortages and cost increases.
"There will be a lot more smaller companies that will fold, I think."
Whangārei MP Emily Henderson said Northland historically had a lower median wage so the Government income increases over the last five years were important for the region.
"[Minimum wage] was $16 an hour when we took over in 2017, imagine trying to survive on that."
Whangārei MP Emily Henderson said minimum wage increases will help Northlanders who are struggling with the "global cost of living increases." Photo / Michael Cunningham
Henderson said the 6 per cent increase in April was aligned to be just above the rate of inflation in the last quarter to help people keep pace with increases in costs of living.
"It's going to be an immediate help with the hard work that people have to do to survive this global cost of living increase we are experiencing."
Henderson recognised the feedback around minimum wage increases and the possible burden on small business owners but said it was about looking at the bigger picture.
"I get that it feels like one more thing to a small business owner but the research consistently shows both here in New Zealand and overseas, that actually increasing the minimum wage is really good for the economy.
"Economies with higher minimum wages have better stronger local economies."
Henderson wouldn't say if the Government was eventually aiming to match the minimum wage to the living wage.
"We've got to strike a balance for businesses," she said.
On the notion that minimum wages were catching up to "skilled" or "middle-earning" workers, Henderson said investment in education was still valuable and the aim continues to be to lift people out of poverty.
"Over time people with higher education earn considerably more than people who did not [study].
"There are real advantages in supporting people on the minimum wage ... because it's not just what's in your pocket, it's what's in the pocket of people around you."
