Media Release: National Distribution Union Tuesday January 25, 2011.

Minimum wage: twenty five cents won't do it

A union representing middle and low income workers says 25 cents an hour extra will do little to help workers on the minimum wage.

The Prime Minister told a post cabinet press conference this afternoon that 2 percent was a likely figure for the minimum wage increase, yet to be confirmed by Cabinet.

This equates to 25 cents an hour and National Distribution Union General Secretary Robert Reid said that this was not good enough for workers battling rising costs from petrol, food and other items.

"Last week's figures showed CPI jumped 2.3 per cent in the past three months, driven by the GST increase. Economists expect inflation to remain above 4 per cent in 2011," he said.

"While John Key may see this is a one-off, these are very real cost increases for low paid workers."

"An immediate increase in the minimum wage to $15 an hour would both help low income workers with rising costs and delivers a fiscal stimulus to a slow economy."

The NDU has made the case for a minimum wage of $17.22 in its submission to the Minister of Labour at the end of last year, equating to two-thirds of the average wage, Robert Reid said. The minimum wage is currently $12.75 an hour.

ENDS

© Scoop Media