-
Phil Goff -
Related
Labour and the Maori Party want the minimum wage raised by more than the 4.2 % announced by the Government.
Prime Minister John Key says it will increase from $12 an hour to $12.50 on April 1.
The youth training and new entrant wage would also increase, from $9.60 to $10 an hour.
Labour leader Phil Goff says the minimum wage should be raised to $13 an hour and the 4.2% increase, after inflation, equated to nine cents an hour in "real wages".
Maori Party co-leader Tariana Turia says it should be increased to $15 an hour and income up to $25,000 should not be taxed.
Goff says that in difficult times the burden too often fell on those already finding it hardest to survive.
"Our lowest paid people in shops, offices and factories struggle to make ends meet," he says.
Turia says that given the current world economic crisis it was even more important to lift the minimum wage.
"If we are to survive this crisis in reasonable shape we need to get cash into the hands of our most vulnerable so they can adequately feed, house and clothe their families," she says.
Key says the increase struck the right balance between protecting the spending power of the lowest income earners and protecting jobs.
Official advice was that the increase would have a negligible effect on employment.
Green Party employment spokeswoman Sue Bradford says the increase was better than nothing but would not buy much as costs continued to rise.
Council of Trade Unions president Helen Kelly says the move was welcome but it was the lowest increase in the statutory minimum for many years.
The Unite Union, which covers many low paid workers, said it was barely enough to cover the increased cost of living.
