9 October 2012

National offers young workers a hefty pay cut

The National Government thinks the way forward for New Zealand is to give young workers a pay cut, Green Party Co-leader Metiria Turei said today.

The National Government today announced it would return youth rates. Youth rates will allow employers to pay less than the minimum wage to many young workers, including those starting new jobs or going to work after being on a benefit.

“National’s proposal to reintroduce pay rates for young workers is simply another mechanism to deliver cheaper labour to employers and is discriminatory,” said Mrs Turei.

“Rather than offering young people a bright future, through skills and training, youth rates are about undercutting all workers’ wages by ripping off young workers.

“The most disgraceful part of National’s attack on young workers is that they are effectively increasing the age limit for what constitutes a ‘youth’.

“The previous discriminatory policy of youth rates at least stopped at 18,” said Mrs Turei.

“Now, under the John Key Government, those under 20 who have been on a benefit for more than six months will find that any job they may get could pay significantly less than the minimum wage.

“This policy is an incentive for bad employers to hire and fire young workers and is likely to see real wages for young workers drop significantly,” Mrs Turei said.
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