CTU calls for $15 an hour minimum

Union leaders want a minimum wage of $15 an hour as part of a three-pronged campaign before next year's general election.

Spurred on by vigorous union campaigning in the Australian federal election, the Council of Trade Unions yesterday unveiled its own strategies to ensure the protection and enhancement of workers' rights, stronger public services and higher wages.

At the end of its biennial conference, CTU president Helen Kelly led calls to raise the minimum wage from $11.25 to $15 an hour.

Secretary Carol Beaumont said while this would stimulate "robust debate", such discussion was needed to determine what was a socially acceptable minimum standard of living.

Business New Zealand chief executive Phil O'Reilly said lifting minimum wages to that level was a "misguided" goal. It would have a significant impact on the workforce as "for that kind of money" employers would seek more skilled staff.

"You tend to hurt that group of workers you're trying to help."

However, he supported efforts to upskill those on low incomes.

Ms Beaumont said wages here were 30 per cent lower than in Australia, where the minimum hourly wage was $13.47, equating to just over NZ$16. "We need a concerted effort to lift pay, and it's not just about the Government lifting the minimum wage."

Labour Minister Ruth Dyson said the minimum wage had moved up from $7 in the past eight years. Improved skills would lead to a change in the value of work, rather than just the wage rate. "That's the way to move a sustainable high wage economy."

Ms Kelly said tax cut arguments had to be balanced against the need to maintain core public services.

If lower taxes meant health cuts or cuts to wages of low income earners, they were not a priority.

The CTU also believed the Employment Relations Act needed to be "significantly amended" to genuinely promote industry and multi- employer collective bargaining.

Ms Dyson said such changes could not be considered till the Labour Party authorised them to be included in its manifesto.

Ms Kelly said the CTU's campaign, helped by other unions, was separate from any perception that it was affiliated to a particular political party. Voters should explore all parties' employment policies.

- © Fairfax NZ News