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Home / New Zealand

Trainees to get minimum rate

11 Jun, 2003 02:53 PM2 mins to read

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By KEVIN TAYLOR

Parliament should today pass a law giving thousands of workplace trainees, especially those in panelbeating, hairdressing and horticulture, the minimum youth wage.

The Minimum Wage Amendment Bill, a hangover from Labour's first term in office, is nearly through its third and final reading.

It removes the existing exemption from the
minimum wage for trainees who are doing at least 60 credits of training a year towards a qualification on the National Qualifications Framework.

Trainees will be paid in line with the present minimum youth rate of $6.80 an hour.

A spokeswoman for Labour Minister Margaret Wilson said about 35,000 people were known to be in categories of training covered by the bill.

Of those, people training for hairdressing, panelbeating and some horticultural areas - about 10,000 people - are likely to be affected by the legislation.

However, the spokeswoman said it was unknown how many of that group were being paid less than the minimum youth wage at the moment.

"It appears it does not affect a huge number of people," she said.

The bill was part of the Government's drive in its first term to raise minimum employment standards.

The National Party and business groups have warned that the bill may put the viability of apprentice training at risk.

The bill was introduced to the House in 2001 and has the endorsement of the Greens and New Zealand First.

Members of the transport and industrial relations select committee, which considered the bill and reported to Parliament in October 2001, disagreed about whether it should be passed.

Last December, Business New Zealand described the bill as anti-growth, saying it would discourage apprentice training and increase payroll costs for employers.

It would also override existing employment agreements.

The select committee report said National and Act were concerned that the Labour Department had been unable to estimate the compliance costs to employers, the effect on the labour market, or the positive impact on trainees.

United Future opposes the bill for the same reasons.

Trainees' pay:

* Trainees will be paid in line with youth rates of $6.80 an hour under the bill.
* About 35,000 people are in training categories covered by the bill.

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