By Duncan Garner
The Government has given the country’s lowest paid workers a rise – but unions and advocates say the 25c an hour increase to the minimum wage is "pathetic" and "an insult".
The minimum wage will change to $12.75 an hour, up from $12.50, giving workers an extra $10 per week – costing employers $52 million across the board.
Critics have been quick to criticise, and once PAYE tax and new ACC levies are deducted, the rise barely equates to $6 per week.
As a cleaner at Parliament, Lugi Fa’amausili is paid $12.55 an hour – 5c above the current minimum wage. The increase to the minimum wage will see her earning an additional 20c an hour.
“So what?”she asks. “It’s shocking, and I’m not very happy about it.”
Ms Fa’amausili is one of more than 100,000 workers on the minimum wage. The additional 25c an hour barely covers the cost of inflation, but the Government says any higher and their jobs may be lost.
“We’re taking a cautious approach – we’re concerned on the impact of jobs, both in terms of creation of jobs, retention of jobs, and perhaps even reduction of working hours,” says Labour Minister Kate Wilkinson.
Within hours of the announcement, unions and low-paid workers started reacting. Earlier this afternoon a protest took place outside the Auckland Chamber of Commerce.
“Twenty-five cents an hour for the lowest paid workers is not going to solve the problem of the working poor in New Zealand,” says Joe Carolan of Unite.
“It’s a real slap in the face and a cheap shot.”
The Government is not arguing with the figures.Ms Wilkinson says it is a “modest” increase.
“We’ve done that to maintain that relatively with the CPI," she says.
“It’s really mean and miserable,” says Labour party MP Trevor Mallard. “It probably means about $6 in the hand for the average low-paid worker – and that’s just not fair. It’s hardly worth having.”
Ms Fa’amausili says the increase means very little.
“I’m not happy about it, because I know it’s not enough to support my family,” she says.
National’s record on the minimum wage is poor, and even today the party admitted officials recommended a number of larger increases – but National opted to go with the smallest one of just 25c.
There is no shortage of critics tonight who claim this shows National cares little for low-paid workers.
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