Another minimum wage rise that isn't enough

Today the government announced that the minimum wage would rise from $12.50 to $12.75 this year, equivalent to an extra $10 a week (before tax) for a full time minimum wage earner, less than the price of a kilogram of cheese. This tiny increase comes despite a recent survey showing that 61% of New Zealanders support a rise to $15 per hour, the amount supported by the organised labour movement and in particular the Unite union's campaign for a citizen initiated referendum on the issue. Prime Minister John Key -a millionaire who made his money in currency trading- ruled out an increase to $15 the same day the survey results came out, claiming “there's got to be a recognition that where there are increases in wages that they have to be paid for - we don't want to be threatening people's jobs”. Key is echoing a popular myth that someone in his position should know is false- data from the state treasury shows that if anything, raising the minimum wage actually decreases unemployment. After all, those with little money are likely to spend any extra they get in the local economy, rather than on say, international currency trading.

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A decent increase in the minimum wage is badly needed, since 1982 real wages have fallen by 25% while low-income earners have had increases in income tax, and the imposition in goods and services tax (GST) and all essential items. Joe Carolan of Unite said this years increase was an insult to workers;

What workers need is a living wage- we've been pushing for $15 an hour now, and for the minimum wage to be set at 66% of the median wage. Tens of thousands of people have signed our petition for a Citizens Initiated Referendum, but John Key has infuriated the half million workers earning less than 600 bucks with this derisory pittance.