A significant upward swing in the minimum wage would bring an
additional burden to bear on their post-recession planning.
Otago and Southland employers will be disappointed if Cabinet
increases the minimum wage from $12.50 an hour, a spokesman
says.
Otago-Southland Employers Association chief executive John
Scandrett told the Otago Daily Times yesterday that while
there were some signs of an improvement in the southern
regional economies, there were still a large number of
business organisations struggling to remain viable.
"A significant upward swing in the minimum wage would bring
an additional burden to bear on their post-recession
planning."
A survey has found 61% of people support raising the minimum
wage to $15, but Prime Minister John Key has ruled out that
kind of increase this year.
The New Zealand Herald surveyed 2300 people on the
issue - 3.5% of respondents said the minimum should be lower
than the current $12.50 an hour; 30.5% thought it should
remain unchanged; 61% thought it should go up and 5% did not
have an opinion.
The minimum wage, received by about 100,000 workers, is
reviewed every year and Cabinet is expected to make a
decision shortly whether to increase it.
Mr Key said the issue was not on today's Cabinet agenda, but
would be discussed "fairly soon".
"The Government has always tried to be fair.
"We recognise there are about 100,000 people who earn the
minimum wage, I think it's important they are able to make
ends meet as best possible, but also there's got to be a
recognition that where there are increases in wages, that
they have to be paid for - we don't want to be threatening
people's jobs, so there's a balancing act here and that's
what the Cabinet will consider.
"It won't be $15 in this particular round, that would be an
increase of $2.50 . . . and that would just be too
significant a hike," Mr Key said.
Unite union head Matt McCarten said an increase up to $1 was
possible.
"I know their dilemma because they've got public servants who
they are saying should get zero.
"But these people are on the bottom of the food chain and
should be supported to get an increment."
The Maori Party, Green Party and Labour all support the $15
level.
Labour MP Trevor Mallard said a rise to $13.75 this year
would pave the way for the $15 goal next year.
He was concerned the Government may opt for a nil increase.
