The headline says payrise, the more likely outcome is the sack

A pay rise without an increase in productivity leads to the sack….not more money.

The working poor had cause for celebration as the Labour and NZ First leaders shook hands today in a coalition deal.

The minimum wage will go up to $16.50 starting April 2018 before rising in steps to $20 by 2021.   

Currently, the minimum wage is $15.75 and the living wage is $20.20

Around 700,000 people earn less than the living wage – a figure found by the Council of Trade Unions – and this pay rise will “transform them”, Unite union national secretary Gerard Hehir said.

“People are living week to week, hand to mouth when on the minimum wage. This is with them even working fulltime.”

The first wage increase will see someone working 40 hours take home $30 a week extra. By 2021 this will amount to an extra $170 a week, before tax.

McDonald’s employee Alex Couprie, 23, was delighted to hear about the wage increase.

She currently works around 17 hours a week for $15.85 an hour while studying fulltime at Unitec. With her living cost allowance she lives off around $400 a week and is left with around $210 after rent and bills. The remaining money goes on transport, food and other expenses like clothes, school books and savings.

Couprie currently has to save a week ahead to go to the movies with her partner. But the relief would be even bigger for her workmates with children.

“Honestly it’s great. I’ll be able to afford more things and not have to budget as strictly.

“I know people that have kids and are struggling to make ends meet. This would enable them to give their kids what they need.”

She won’t think it is great when she is replaced by a kiosk. Increasing wages beyond the worth of the output is what leads to increasing unemployment.

Watch and learn, since it seems the Labour party and NZ First want to learn basic economics with low paid workers as the guinea pigs.

Pay eggwiddy will cause even more harm. Chickens are coming home to roost in the rest home industry where some caregivers are now paid around $1.50 per hour less than a registered nurse.

Ambulance officers get $25 per hour, are they worth just $5 more than a worker serving burgers? The inflation this will cause will lead to massive hikes in interest rates…which will lead to hair cuts on mortgages, and many people will end up upside down with their mortgage…so while it all sounds like cream cakes, jam and lashings of maple syrup it will all end in tears and with growing unemployment.

 

-NZ Herald


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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