'To ensure that they can pay those workers is going to be a challenge' - business expert wary of minimum wage rise

October 23, 2017

A raft of proposed changes to NZ Employment Law are set to come in under the Jacinda Ardern led coalition government.

Proposed changes in the Kiwi workplace by the new Labour led Government has the support of unions, but not every business owner is so keen.

The new Government plans to extend paid parental leave from 18 to 26 weeks and increase the minimum wage to $16.50 an hour.

Unions believe these will make a significant difference to the lives of working people.

"Low wages is a major problem in our economy in our society that's why forty percent of children living in poverty are in working families and that's just really disgusting," Jill Ovens from E Tu union said.

Some in the business community are concerned increasing minimum wages will have a negative impact.

"We do have to be mindful also that there are a large, large number of small businesses in NZ so there could be an impact on them.

"Whether they can access the capital to ensure they can pay those workers is going to be a challenge so we just need to keep a watch on that," Kirk Hope Chief Executive of Business New Zealand said.

Labour's also signalled it is scrapping secondary tax, which has seen those who work two jobs taxed at a much higher rate on their secondary income.
 

SHARE ME

More Stories