Pressure to scrap youth rates and raise minimum wage

The Council of Trade Unions (CTU) is calling for public support for the introduction of a $12 an hour minimum wage for all workers.

Speaking in Auckland last week, CTU president Ross Wilson said the union joined with other "concerned community representatives" in calling for a minimum wage increase now, and an end to youth rates.

From March 27 the minimum adult rate will be $10.25 an hour and the youth rate $8.20.

Wilson said: "A $12 [an hour] minimum wage is totally justifiable on both equity and economic development grounds. The CTU wants the government to phase in a minimum wage of two thirds of the average adult wage, as recommended by the International Labour Organisation, and we see an increase to $12 now as a step in that direction.

The CTU also supports the removal of the age differential for the minimum wage by scrapping youth rates.

"We support fair pay for a fair day's work," said Wilson. "And we look forward to campaigning alongside other community groups this year for the abolishment of youth rates and a speedier increase in the minimum wage to $12 per hour.

"Action is needed now on New Zealand's low wage crisis, and an immediate increase in the minimum wage would make a real difference to many low paid workers."

The National Distribution Union's national secretary, Laila Harre, says low pay affects more women and teenagers than adult men but it is not just an issue for these groups.

"I have just come back from talking to timber mill workers in Northland who earn $12 an hour after 15 years' service," she said. "They have to make up their wages with overtime.

"We know that an adult worker in a union supermarket starts on around $2.50 an hour more than the minimum wage. In a non-union supermarket the minimum wage rules."

Business New Zealand, which describes itself as 'New Zealand's largest advocacy group for enterprise' is against using legislation to increase wages.

Speaking to the Herald in December, its chief executive Phil O'Reilly said the increase in the face of an economic downturn would not help growth.

"You can't just legislate higher wages into existence," he said. "Forcing employers to increase wages by legislation actually harms unskilled people."

He said when the wages of low-skilled people were higher than the value they added to a company, they were less likely to be hired. The rise could also push up other wages.

"The best route to high wages is through higher skills and productivity. Business would rather the Government kept its focus on these important issues ... "