The new youth rates will be set at 80% of the adult minimum wage (currently $13.50) which will apply for the first six months of a job. It is not limited to a first job, so conceivably a young person could be on this wage multiple times. While the government claims that it is voluntary, the reality in the workplace is that in this environment of high unemployment. Workers get no choice. The areas of work that this would apply i.e. fast food, supermarkets, retail etc. have an excess of people looking for work, demonstrated by the queues of thousands who line up to apply for a job every time a new supermarket is opened. It is estimated that 40,000 young people will be “eligible”/affected.
According to the spokesperson of the New Zealand Retailers Association Louise Evans McDonald 71% of their members supported the reintroduction of youth rates when they were surveyed in 2011. Something which is unsurprising considering that for retail in particular wage costs are a large part of their operating costs. However when reading through the associations own 2011-12 Retail Market Summary they list a 31% increase in sales volume since 2004 compared to inflation of 22%, so retail isn’t exactly suffering in the current financial climate, any decrease in workers’ pay is purely going towards increasing profits. [Read more...]