Minimum wage increase: 175,000 kiwis will get a salary increase of $ 44 per week starting April 1

The minimum wage will increase to $ 20 per hour on April 1 with the government meeting its last term commitment.

The Council of Trade Unions welcomed the deadline, saying it will help New Zealanders who are the “working poor” facing rent increases.

But National labor relations spokesman Scott Simpson called the compromise “a cynical new announcement” of the last administration’s promise designed to deflect attention from pressure on spokesman Trevor Mallard.

Simpson said the minimum wage increase had been flagged last period and questioned why a press release was issued the day a select committee questioned Mallard about his $ 330,000 defamation case.

“He’s just cynical.”

Labor Relations and Safety Minister Michael Wood revealed the April deadline for raising the minimum wage this morning, saying it would mean an increase of $ 44 per week for about 175,500 kiwis.

The increase was estimated to boost wages across the economy by $ 216 million, meaning more purchasing power.

“There are many Kiwis earning minimum wage who have gone the extra mile in our fight against Covid.

“I think everyone agrees with those who served us so well during the lockdown, including grocery workers, cleaners and security guards, they deserve a raise,” Wood said.

The previous government promised to raise wages to $ 20 an hour by 2021, and the Labor Party included the promise in its election manifesto.

Wood said pointing to salary increases in the past three years meant companies had certainty and time to prepare.

The chairman of the Council of Trade Unions, Richard Wagstaff, said the minimum wage increases are really important and mean a lot to the many “working poor” facing rent increases.

“We believe this is a really important and significant step that the government has taken and we are pleased to see it.”

Wagstaff debunked the argument that minimum wage increases led to job losses, saying “the facts haven’t borne it one bit.”

Advice from the Ministry of Business, Innovation and Employment on the April increase from $ 17.70 to $ 18.90 estimated about 65,000 lost jobs.

“His forecasts and those of the Treasury on this issue are consistently wrong, wrong, wrong, and I think they have very little credibility.”

Wagstaff said that minimum wage increases often coincided with record lows in unemployment and actually increased productivity because it forces industries away from cheap labor.

“And the people who get the money have more purchasing power and we know that people with the minimum wage spend what they get.”

Simpson said the increase would put more pressure on companies that shouldn’t be the ones to take responsibility for raising wages because the government hasn’t done enough to curb rent increases.

Minimum starting and training wages will also go up to $ 16 an hour, to stay at 80 percent of the minimum wage for adults.

The 1983 Minimum Wage Act requires the responsible minister (currently the minister of
Labor relations and safety) to review the minimum wage rates before December 31 of each year.