The Green Party would like to raise the minimum wage. Â As we saw the other day the minimum wage is paid to only 2.4% of the New Zealand workforce, and it is to cover jobs that are, in general, entry level jobs.
Other centrepieces of the Green Party’s workers policy are an immediate increase in the minimum wage to $15 an hour by December, and annual increases up to $18 an hour by 2017. It is also committed to paying core public sector workers the living wage of $18.80 an hour.
The changes would eventually give a person an extra $6400 a year, or $125 a week.
The Greens also want a compulsory redundancy payout of four weeks’ wages, and to scrap youth wages, 90-day trials for new workers, andÂ The HobbitÂ laws that make screen workers contractors — and ineligible for collective bargaining — by default.
The National Party was quick to dismiss these measures as costing thousands of jobs and putting up more roadblocks for businesses.
The Ministry of Business Innovation and Employment estimates that an immediate increase to a minimum wage of $18 an hour could cost up to 16,250 jobs — although economic conditions could be different by 2017.
But Mrs Turei dismissed this: “In the US, there are 13 states that have just raised the minimum wage. It’s good for the economy, it’s good for families. There hasn’t been a significant drop in jobs.
“Companies will need to pay more to their workers, and therefore their profits will go down slightly. In return, they get a more stable workforce, better productivity and greater commitment.
If you are on minimum wage, and you stay on minimum wage and you can’t find any other jobs that Â pay better than minimum wage, then you’re a barely functional useless person. Â Read more »