16 June 2011

No to Youth Rates

TV3 has reported that 'youth rates will be National party policy this election' and could apply to 16 to 24 year olds.

The youth union movement, Stand Up, is strongly opposed to this move and does not believe it will help young people get jobs.

Spokesperson James Sleep said "there is already in the current law an ability for employers to pay a training wage of $10.40 an hour which is 80 percent of the minimum wage. But this applies when the worker is involved in recognised industry training of at least 60 credits. There is no justification to pay young people less simply because of their age".

James Sleep said that research from the Treasury, Motu and the Department of Labour shows there is no link between the abolition of youth rates and the loss of jobs. When youth rates were abolished for 18-20 year olds, employment increased, not decreased.

"Youth unemployment for the 15-19 age group has gone from 17% to 27.5% under National".

Sleep says the Government should invest in young people through ongoing training and stimulate the economy to create jobs rather than cut pay rates for young people."

Many young people are also students and bringing back youth rates to cover 16-24 year olds will have huge implications for students.

"The cost of living has gone up by 4.5 percent, unemployment is high, and now the Government is saying the solution is to cut pay rates for young workers, which will only make their lives tougher", said Sleep.

ENDS

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