Decision to shelve youth rates bill welcomed

The Council of Trade Unions (CTU) has welcomed the Government's decision not to support the reintroduction of youth rates.

The National Party yesterday ruled out supporting a bill introduced to Parliament by ACT MP Sir Roger Douglas pushing for youth rates.

"We are pleased that the Government agrees that paying young people less for doing the same work as an older person is fundamentally unfair," said CTU President Helen Kelly.

"There can be no justification for wage discrimination on the basis of age."

The bill would have done "nothing to alleviate unemployment," Ms Kelly said.

The last government ditched youth rates, with some exceptions around trainees and young workers starting out, and said the minimum wage should apply to all workers from 16 years-old.

Sir Roger said the minimum wage stopped employers taking on young workers, while those who supported it argued it was unfair to differentiate pay rates based on age, saying there was little evidence of a link between youth rates and unemployment.

The bill, which has been attacked by unions, was discussed at a National caucus meeting on Tuesday and ruled out, said a spokesman from Labour Minister Kate Wilkinson's office.

However Ms Wilkinson was not always opposed to reintroducing the youth rate and in February when the bill was first brought up in Parliament she said National "are always willing to listen to good ideas".

She also praised Sir Roger for bringing up the issue and mentioned National's opposition to Labour's ditching of the youth rate, saying "we were concerned it would price young people off the job market".

Sir Roger took an opportunity in Parliament yesterday to ask Social Development and Employment Minister Paula Bennett about whether his bill would be supported and was told that National considered it wouldn't reduce youth unemployment.

"Plus it will be a distraction from the really important work of improving productivity and growing the economy to create long-term jobs which will keep young people in New Zealand," Ms Bennett said.

Opposition leader Phil Goff welcomed the decision.

"It's crazy to suggest that any young person doing the same job exactly as older people should be paid automatically at a lower rate. It didn't add up," he told reporters.

- NZPA