“Chris Hipkins had a chance to show he understands the pain businesses are feeling by hitting pause on further minimum wage increases, instead he’s shown them he just doesn’t get it. In fact, he didn’t even get their feedback,” says ACT’s Small Business spokesperson Chris Baillie.

“The most staggering thing about the announcement is Hipkins’ insistence that he did not get feedback from business. Recent polling said Hipkins can be trusted? Here are the options. Hipkins either didn’t ask business groups about the minimum wage, didn’t get an answer, or got an answer and didn’t listen. The truth will come out and the question will be, who do you trust?

“The Government has just made it harder for businesses to take a chance on a young worker who is looking for a chance. It is putting another cost on businesses at a time when about 30 per cent of retail businesses aren’t sure they will survive the next 12 months.

“The minimum wage had already increased by an astonishing 35 per cent since Labour took office. Worker productivity has increased by just 5 per cent over that period. Small businesses simply can’t sustain another hike.

“Further increases will mean businesses going under, job losses, or fewer hours being offered – all of which hurts workers. There’s no magic money tree.

“ACT has called for a three-year moratorium on minimum wage increases to give small businesses a breather.

“Forcing businesses to pay a wage that’s higher than the contribution a worker makes is nonsensical. It ultimately locks young and unskilled workers out of the labour market, preventing them from getting the skills they need to grow and succeed.

“Chris Hipkins has said he wants a closer relationship with business. That relationship is going up in smoke.”

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