Youth pay rates could be re-introduced

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Thu, 16 Jun 2011 6:54p.m.

The current unemployment rate for 15-24 year-olds is 18.8%

The current unemployment rate for 15-24 year-olds is 18.8%

By Patrick Gower

The government looks set to propose the re-introduction of special lower pay rates for young workers.

There are signs it may even extend the definition of a youth so that workers into their early 20s may be forced to accept lower pay rates.

Sir Roger Douglas wants young people to be allowed to work for lower wages than the law currently allows, claiming that youth rates are better than the dole.

“The government is saying to Johnny ‘thou shall not work, thou shall sit on the couch and we shall give you $4.50'. Now that is nuts. Labour and National claim they care and that I’m extreme. Well, bugger me. They are the extremists,” says Douglas.

The current unemployment rate for 15-24 year olds is 18.8 percent which means 75,000 in that demographic are out of work.

For Maori the rate is 28.8 percent, or 20,400 people.

At the moment everybody gets paid the minimum wage.

“If you've got somebody who is 16 who is wanting a job and someone who is 30 at the same price, then who is the employer going to employ?” asked Minister of Labour Kate Wilkinson.

The current minimum wage is $13 an hour.

16 and 17 year olds can be paid a ‘new entrant’ rate of $10.40 for three months only, but that could be expanded. Alternatively, a new youth rate of $8-$10 could be introduced.

National isn't ruling anything out.

When asked what her definition of a ‘youth’ was, Wilkinson said the bracket used was "15 to 24," but she had no view as long as they got jobs.

Young workers were concerned that the potential changes could disadvantage them.

“No it's not fair, I work as hard as anyone else so I don't see why I should get paid less,” said 19-year-old Ashley McGregor.

Unions say the measures could cause job losses.

“It will result in other people being fired,” says Unite Union campaign organiser Joe Carolan. “Young mums. Older workers. They'll be fired for the cheaper model”.

But the government is clearly looking for a cheaper model of paying the young. Youth rates will be National party policy this election, although some of those who could get paid them won't be old enough to vote.

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Comments

18 May 2012 10:11p.m.

Mary wrote:

I think that's a great incentive for under 18 year olds - children at that age would be just happy to have a job.

28 Oct 2011 08:13p.m.

Jed wrote:

I'm 18 - Living in a flat of 5. I barely get along with $13 an hour in the first place! After tax and kiwi saver, i only get $10.10 of that! Considering extremely high food prices, the price of petrol, rent and the power bill, my bank account is completely cleaned out! I am a full time student and cannot afford to take up more hours to fill in the gap that this "Youth Rate" will make! National needs to think up a better policy! Perhaps no tax for people under 20 with youth rates? that way $10.40 youth rate is relatively the same as the $10.30 that i receive after tax on $13 an hour.

28 Oct 2011 07:55p.m.

Rebecca wrote:

As long as the age is defined as 18 or preferably 17 and under (so school age not uni) this is a good idea in my opinion. it'd be easier to get jobs and experience as a younger person at school when you don't need to rely on the income as you are living at home etc. This will mean by the time you are old enough to receive the higher pay bracket you will be experienced enough for the jobs anyway obviously some people may need a higher income under certain circumstances but there are always entry level jobs that pay more than minimum wage if your willing to look for them and put the effort in. (from an 18 going on 19 year old first year student who needs employment but has little experiences point of view)

03 Oct 2011 02:13p.m.

Danielle wrote:

I like the idea of youth rates for 15-17/8 yr olds. Which are youth that should be living at home without serious expenses. However 16-24? Im 21 and have have a bachelors degree, and next year ill have an honours degree. No way will i take a reduced rate because i am youth?!

23 Aug 2011 05:52p.m.

Matt wrote:

Well done government. Please disadvantage our students and future tax payers even more. This is why everyone is moving overseas, short sighted ideas that have become so typical in NZ government.

23 Aug 2011 05:52p.m.

Matt wrote:

Well done government. Please disadvantage our students and future tax payers even more. This is why everyone is moving overseas, short sighted ideas that have become so typical in NZ government.

23 Jul 2011 02:14p.m.

joseph wrote:

the government is going to make less youth want to work for $8 an hour that is pathetic. They will have people living with there parents till they're 20 - 24 because they cant afford to get a house or loan or have enough money to live on there own means.

02 Jul 2011 02:40a.m.

Stefan wrote:

I'm 20 years old now and I've been on the dole. Having looked for work for a few years beforehand, I've ended up working for minimum wage as both a cleaner and as a checkout operator - and have been more competent and capable than many older staff doing the same jobs. There is little to no correlation between minimum wage jobs and age. In fact, if you're 40 working for minimum wage, you're more likely to be a poor worker than an 18 year old. I'm now studying, because I'm not a stupid person, and because many bigoted employers out there are completely unwilling to give younger employees a chance. Perhaps once I have a degree, obtaining a job as a labourer will be slightly easier.

01 Jul 2011 11:20a.m.

kay wrote:

I would employ more youth - and give them a go - if I didn't have to pay them the same rate as my maturer staff. I would classify youth as under 19 though!

30 Jun 2011 05:06p.m.

Anna wrote:

Has anyone here actually been a youth trying to find a fricken job in this current economic climate?????!!!!!!!??????!!!!!! well i can tell you now there are hardly any and even supermarket jobs are highly competed for now. anyone that says different obviously has know exposure to it or is in the lucky position that they have been able to job (now it is usually through people you know). I know people on both side and I have to you can't just roll up to your local supermarket anymore and get a job BECAUSE THERE IS NONE. this government is putting more people out of jobs than they are creating, e.g. the defence force and the health services last year. this is just another way of punishing people who cannot find work. i am not saying that there are not people out there that are not lazy and just living off the dole because there are, BUT everyone likes to generalise about whole populations, and I know from experience this is not the case of many people on the dole that are actively looking for work, and now we are discriminating on age?? THIS IS RIDICULOUS! I am 23 studying for my Masters degree and once I graduate when I am 24 am I going to be paid less because of my age?? This is just stupid rubbish that National (and parties like it) are spewing out because they don't want to admit that we are in an economic crisis and that perhaps there are not really jobs around.