National should reject ACT’s prescription on youth wages

An across the board wage cut for young workers will do nothing to stimulate the economy and close the income gap with Australia, the union for retail and other young workers said today.

In Parliament this afternoon Minister of Labour Kate Wilkinson opened the door to bringing back a lower youth minimum wage, after a prompting from ACT’s Roger Douglas in a supplementary question.

“Two weeks ago the Government missed an opportunity to stimulate the faltering economic recovery and assist low income workers make ends meet, with a miserly 25 cent increase in the minimum wage,” National Distribution Union General Secretary Robert Reid said.

“And now, a day after signalling a hike in GST that will hit low income workers hard, the government is opening the door to wage cuts for young workers.”

“Young workers don’t get to stack supermarket shelves 20% slower than their older workmates, or flip burgers 20% slower. It is simply unfair to pay young workers less money for doing the same job.”

“ACT is calling for a closing of the income gap with Australia, yet at the same time advocating for cuts in the minimum wage.”

“Who in their right mind would take advice on the economy from Roger Douglas? We hope Kate Wilkinson sees sense not to.”

“Even Treasury research found shown that earlier moves to end wage discrimination for young workers had no adverse effects on youth employment or hours worked,” Robert Reid said.

ENDS

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