Minimal wage increase insufficient for working people

Workers on low pay will be pleased that the Government didn’t follow advice to freeze the minimum wage, says the Service and Food Workers Union Nga Ringa Tota.

SFWU National Secretary, John Ryall said this would have an impact not only on those on the minimum wage, but also all those hundreds of thousands of workers just above it.

“A freeze would have made it very difficult to bargain a pay increase that reflects the high cost of living for those whose entire pay packet goes on essentials like food, rent and petrol.”

“Although the average wage in New Zealand is getting higher, the minimum wage is not rising at the same speed. We want to see steps put in place to progress towards a minimum wage which is equivalent to two thirds of the average wage.”

“It’s really important for the economy to put more dollars in the pockets of low paid workers like those our union represents, because they do spend their income and that keeps things turning around. That’s why we’ve argued an increase in the minimum wage won’t cost jobs – it could actually create jobs!”

ENDS

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