The country’s minimum wage increase announced today will cost jobs and impact small businesses, says National’s workplace relations spokesperson.
A boost of $1.20 per hour will bring the minimum wage to $18.90 an hour, effective from April 1, 2020.
While the increase will be good for some, with an extra $48 per week for Kiwis working full-time, Todd McClay says it will take away opportunities from other New Zealanders.
“The Government’s own official advice shows increases to the minimum wage of this magnitude will stop thousands of new jobs being created,” says Mr McClay.
“It means employers are less likely to create jobs, less likely to invest in training and development and less likely to replace workers when they leave.”
It’ll go up to $18.90 per hour, meaning a raise for around 250,000 workers.
He said today’s change will impose significantly higher costs for businesses who will have no choice but to increase their prices.
“New Zealanders are already feeling the effects of high petrol prices and increasing rents, removing opportunities for work is only going to make matters worse,” he said.
Though he said National is committed to securing high wages for workers, he believes it should be done differently.
“We believe the minimum wage should go up in a balanced way that doesn’t go too far, too fast.”
The starting out and training wages are also rising, to $15.12 an hour - remaining at 80 per cent of the adult minimum wage.
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