Green MP Sue Bradford is hailing Restaurant Brands' youth wage raise as "a great step forward in the campaign for wage justice and equity for young workers".
The Unite union, which represents staff at KFC, Pizza Hut and Starbucks outlets owned by Restaurant Brands, said workers had accepted an offer of a 7.9 per cent minimum wage increase at the two food outlets and a 75 cents an hour rise at Starbucks coffee outlets.
The move came after intense lobbying by the union, including a rally and noisy march by high school students down Queen Street in Auckland last Monday.
The students were supporting Ms Bradford's members bill which would mean people under 16 would be eligible for the same minimum wage as adults.
The bill is expected to have Labour Party support in Parliament.
"This settlement shows that major employers have no stomach to continue with exploitative youth rates. this is yet another compelling reason for parliament to pass my bill to scrap youth rates," Ms Bradford said.
Unite national director Matt McCarten said progress was also made towards a goal of wiping out youth rates, with raises of up to 54 per cent having been negotiated for workers aged under 18.
Mr McCarten said all staff under 18 would receive 90 per cent of the adult wage from next week.
"During the five months of negotiations the company had refused to shift on youth rates claiming it was a government responsibility.
"It wasn't until Monday night after the student strike that an offer to lift young workers to 90 per cent of adult wages was made."
"Not only are we going to see the phasing out of youth rates, but also an end to casualised work in New Zealand," Mr McCarten said.
Restaurant Brands' decision should be a sign of things to come, the Council of Trade Unions said tonight.
"It took workers to stand together in unions to get rid of youth rates at BP and Restaurant Brands," said CTU president Ross Wilson.
" More needs to be done, and we are organising workers to get involved in their union's campaign to end youth rates."
Employers should follow the example of BP Oil and Restaurant Brands and end youth rates before the law required them to, he said.
"Unions also want a $12 minimum wage now, not in 2008, and are calling on the government to introduce a $12 minimum wage sooner rather than later."
- NZPA
Abolishment of youth wages one step closer Bradford says
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