Media Release
February 7, 2011
For Immediate use

25 cent minimum wage rise does nothing to help low paid workers

“The government’s 25 cent increase in the minimum wage will do nothing to improve the lives of low paid New Zealanders struggling to make ends meet,” says Service and Food Workers Union National Secretary John Ryall.

The Minister of Labour Kate Wilkinson has announced that the minimum wage will rise from $12.75 an hour to $13 an hour on April 1, next year. $13 an hour equates to a weekly pay before tax of $520 for a 40 hour a week.

“There are 20,000 cleaners in New Zealand most of whom are trying to survive on $13.10 an hour,” says John Ryall.

“Increasing the minimum wage to $13 an hour does nothing to help them feed their families.”

‘We would like to see the Prime Minister try to support his family on $520 a week before tax.”

“For advice he could talk to the cleaner who cleans his Beehive office. She earns $13.10 an hour, that’s $524 a week before tax.”

“With inflation running at 4% the 1.9% increase in the minimum wage fails to cover the increase in living costs making life a daily struggle for low paid workers.”

“Low paid workers desperately need a meaningful increase in the minimum wage.”

“The minimum wage should be increased to $15 an hour which is $600 a week before tax.”

“Then to enable all workers to be paid a wage they can live on the minimum wage should be pegged at two thirds of the average wage,” says John Ryall.

ENDS

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