Minimum wage bill headed for hearings:
(posted 15/2/2006)
Fresh on the heels of the Prime Minister's assurances that making
things better for business would be a top priority, the Labour
caucus has agreed to support the referral of Sue Bradford's
Members' Bill abolishing youth wage rates for Select Committee
hearings.
According to Labour Minister Ruth Dyson, the support of the
caucus is limited -- so far -- to that.
"[I]t is obvious that there is a debate to be had on the
suitability of paying workers at a different rate for the same job
just because of their age. We support that debate being had through
the Select Committee," she said.
Ms Dyson pointed out that Labour had been responsible for a number
of reforms to the minimum wage scheme and that it was committed to
seeing the adult minimum wage reach $12 an hour by the end of 2008,
if economic conditions permit.
Under the current regime, the minimum adult wage, which applies to
people over 18 years, will increase from $9.50 to $10.25 an hour
from 27 March 2006.
The minimum youth wage - for workers aged 16 and 17 years - will
increase by nearly eight per cent, from $7.60 to $8.20 per hour, to
stay at 80 per cent of the adult minimum wage.
The minimum training wage will increase to the same rate as the youth minimum wage.
In 2001 the Labour-led government lowered the age of eligibility
for the adult minimum wage from 20 to 18 years and raised the youth
minimum wage in two annual steps from 60 per cent to 80 per cent of
the adult minimum.