Minimum wage, maximum stinginess

From April 1st, minimum wage earners will take home an extra $18 in their weekly pay packet. That princely sum might buy them around nine litres of petrol, a movie ticket, or two packets of fancy sausages. That’s assuming they don’t need it to put towards rent, bills, or debt.

Closing the Gap spokesperson Peter Malcolm says the increase of 50 cents to $15.25 an hour falls well short of what is needed to address inequality in New Zealand.

“It’s better than nothing, but not much better,” says Malcolm. “ And it leaves minimum wage workers well short of what’s needed for them to participate fully in society.”

That figure was also revised upward this week when the Family Centre Social Policy Research Unit announced the living wage has been increased to $19.80 an hour for 2016.

The living wage is the income calculated to be necessary to provide workers and their families with the basic necessities of life.

“The government tries to spin the increase in the minimum wage as being generous and aimed at preventing too much pain to business. But what about preventing pain for the hard working citizens of New Zealand?

“If the living wage was implemented across industries and professions – such as in caregiving - then all employers would be in the same boat. I think New Zealanders would prefer workers were given more money in their pockets than the off shore corporates which dominate the retirement industry, for example.

“The stinginess of the minimum wage increase is further highlighted by the fact it is going up 50 cents an hour while the living wage has increased by 55 cents an hour. That means low paid workers are falling even further behind in society.

Closing the Gap asks kiwis to put pressure on employers to pay the living wage.

“A good start would be to curb the salaries of those at the top. The salaries of people who wouldn’t notice if they received $18 an hour more, let alone $18 a week, should be reined in so ordinary New Zealanders can work to support their families.”

ENDS

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