Media Release: National Distribution Union
Monday 7 February, 2011

Economy and workers loose out under low minimum wage increase

The government has lost an opportunity to add more stimulus to the economy and give better help to low income workers with today’s minimum wage decision, the National Distribution Union said today.

“25 cents an hour does little to help workers battling rising costs from petrol, food and other items,” NDU General Secretary Robert Reid said.

“A bigger boost to the minimum wage would also have added further stimulus to our economy, which is still at risk of a weak recovery. Businesses in retail and hospitality in particular would have benefited directly from a more substantial minimum wage increase.”

Robert Reid said that he was also concerned that hundreds of workers in New Zealand were being paid under the minimum wage and the Department of Labour was doing little to police this.

“Just today I received a call from a migrant worker in the Auckland suburb of Northcote who stated that it was very difficult to find a job that was even paying the minimum wage.”

“In addition some major NZ firms add shift and attendance bonuses to hourly rates below the minimum wage. They say that the Department of Labour has condoned this practice. The NDU believes the practice could be unlawful.”

Robert Reid said that workers in unions would continue to negotiate pay rates above the minimum wage, but a higher minimum wage was needed as the wage floor for all workers.

Ends.

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