CTU urges Government to shun youth rates bill

The Government should not support Roger Douglas’s youth minimum wage rates Bill because it is discriminatory and will do nothing to ease unemployment, said CTU President Helen Kelly after the Minimum Wage (Mitigation of Youth Unemployment) Amendment Bill was drawn from the Members’ bills ballot yesterday.

“The minimum wage in this country is already low and expecting any group to work for less than $12.75 per hour is grossly unfair,” said Kelly. “There is also no reason why two people doing the same job should be paid different rates simply because of an age difference. The removal of youth rates in 2008 was a major step forward in improving human rights for this age group and in improving their standard of living. Returning to a youth rate will drive young workers into poverty and will have serious implications on the health and wellbeing of our working youth.”

“Unions campaigned in 2007 to have youth rates abolished and we will fight any attempt to reinstate them. The evidence has been there for years that lower youth rates have no net effect on the creation of job opportunities. The existence of a youth rate will mean that employers will displace older workers when a minimum waged position is available. Many employers that employ large numbers of young people have adapted well to the new law and in fact many have even removed the training rate from their employment agreements. Employers have moved on, Roger Douglas should as well.”

“We want the Government to reject this unfair Bill and instead implement policies that stimulate the economy including job creation measures that help young people get into work.”

ENDS

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