Unions to push for $15 minimum wage

Unions have welcomed today's announcement the minimum wage will increase to $12 an hour but have pledged to campaign for it to go up to $15 next year.

Labour Minister Trevor Mallard said the Government was meeting its obligation to New Zealand First and the Green Party under their post-election deal to raise the minimum to $12 well ahead of the end of 2008 deadline.

The change, effective from April next year, would affect about 140,000 workers and meant the minimum 40-hour-week wage would be $480.

The Government has already raised the minimum wage once this term, to $11.25 an hour which came in on April 1 this year.

"This increase will ensure that lower paid workers share the benefits of economic growth, it will encourage people to join the workforce and provide protection for some of New Zealand's most vulnerable workers," Mr Mallard said.

The Council of Trade Unions secretary Carol Beaumont said there had been a 70 per cent increase in the minimum wage since 1999 which contrasted to when National was in government who increased it by less than a dollar over nine years.

She said the CTU would continue to campaign for increases. It launched a campaign recently to get $15.

"We want a debate about what is a socially acceptable minimum wage.

"But a strategy to lift wages also involves ongoing investment in skills, infrastructure and modernising work practices and it involves strengthening the rights for workers to be covered by industry and multi-employer collective agreements."

National Distribution Union national secretary Laila Harre said it would campaign for $15 in contracts as well as the minimum wage.

"Lets get real a $12 minimum wage rate – which unions called for in 2005 – is not a livable wage for workers in 2008."

National Party labour and industrial relations spokeswoman Kate Wilkinson said National did not oppose the minimum wage but preferred tax cuts.

"Our policy will be on a broader scale and looking at the bigger picture rather than just relying on this artificial solution of having an arbitrary level of what some people think is a fair wage and some people think is not."

NZ First deputy leader Peter Brown said his party was pleased with the announcement today.

"While pleased the minimum rate has been raised NZ First will continue to advocate for annual increases in the minimum wage to ensure our lowest paid workers share in the benefits of any economic success," Mr Brown said.

The youth minimum rate of $9 an hour for employees aged 16 and 17 years will cease from April 1 next year and be replaced by a new entrants minimum hourly rate of $9.60, or 80 per cent of the adult minimum wage.

The new entrants rate can be paid to 16 and 17 year olds for the first 200 hours or three months of employment, then the adult minimum wage applies.

The youth minimum rate conditions were passed by Parliament under a member's bill promoted by Green Party MP Sue Bradford.

- NZPA