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.
However, Mr Scandrett said an increase in the minimum rate
would mean a knock-on impact across the wider wage level
range.
Many firms set wages in relation to the minimum wage and a lift in the minimum rate usually resulted in an upward concertina effect on other wages.
"During the recent economic crisis, in excess of 50% of the nation's businesses imposed a wage freeze, and from where I sit, I do not see many local organisations planning on introducing significant increases in the near future."
An increase of the minimum wage to $15 an hour would take New Zealand to the top of the OECD in terms of the minimum wage presented as a proportion of the average wage, he said.
New Zealand was now second behind France with Australia in fifth place.
Evidence form other countries showed that a high minimum wage led to less formal employment arrangements and more employment in the informal and untaxed labour market, Mr Scandrett said.