Editorial: Too small, minister

Last updated 13:00 29/01/2010

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OPINION: Labour Minister Kate Wilkinson describes the modest – well, to be more accurate, minuscule – rise in the minimum adult wage as fair and all that the country could afford.

The hourly rate goes up by 25 cents an hour to $12.75 from April 1. Given that her own hourly rate is close to 10 times this amount based on a 40-hour week average, it might be difficult for Mrs Wilkinson to identify with the country's lower paid workers.

The Maori Party, however, is much closer to them and describes the new minimum as way below what it is comfortable with.

It describes the issue as a defining one, suggesting this is an area where it is closer to Labour than the administration it currently supports.

The Government says the 2 per cent increase matches inflation. However, unions say the average wage rose by nearly 3 per cent in the six months to last September, suggesting the gap between those on the minimum wage and the rest of the workforce is widening.

Of greater concern is the possibility the Government will decide to lift GST to 15 per cent while reducing the top tax rate. This would increase the gulf between rich and poor even more.

Labour, the Maori Party and some unions wanted a boost to at least $15 an hour.

Mrs Wilkinson counters that this would have cost up to 8100 new jobs. Though that is debatable, many businesses are still struggling.

A 20 per cent increase might well have been counter-productive and would have had a flow-on effect across lower wages generally.

However, the economy could have absorbed something in the order of 50c to $1 an hour. What happened to the Government's drive to nudge the New Zealand economy closer to Australia's?

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- © Fairfax NZ News

3 comments
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daina   #3   05:51 pm Feb 08 2010

ok well i have peoples lives in my hands even tho i have more skills because of the minumum wage i get less than someone at mcdonalds its so annoying to be unappreciated by the government i have to work long hours everyday just so when taxes come off im sweet they should work our hours and get our pay and see how they go not all peaches when your at the bottom john your a spaz you think your making all these great changes but those small ones mean nothing give us what we're worth not that bloody difficult you get more than what your worth anywayz

ROSCOE   #2   08:49 pm Feb 02 2010

Can anyone "feel" for the elected Government,when they sit back in their seaside houses and secluded mansions and have the gall to say an increase of 50 cents an hour is "justified"---by who ?? Get these "blue bloods" out into mainstream,on the streets where the normal people try to exist on the paltry low wage.What they are endeavouring to do, is to have two classes of citizens---one for the "well heeled" and the other ---the dregs of society. Every time one talks about an increase,the the most loudest protest(outside the Government)is the public business sector (Fat Cats),who employ a large percentage of the low income earners on a casual basis. If the current Government are fair dinkum and want to be seen in assisting the low income earners---then do away with taxation on a wage in the area of $20--$25,000 per annum.You can just see the pollies coughing and spluttering on their cognacs and expensive wines as they read this article. Keep the fight alive brothers, as good things come to those who wait. Have a happy day and spend that 50 cents wisely !!!

Steve   #1   03:01 pm Jan 29 2010

The problem with New Zealand is not the minimum wage workers it is keeping the skilled workers on $40-$45,000 who can get $70-$90,000 doing the same thing in Australia - and I know from experience Nelson has this problem. I pity those unskilled on the minimum wage but feel more for those skilled on low wages - they are the ones that New Zealand should concentrate on keeping.

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