Unions slam bid to restore youth rates

The Maritime Union is urging the Government to distance itself from a bill introduced to Parliament by Act MP Sir Roger Douglas seeking to allow for the reintroduction of youth rates.

The last Government ditched youth rates, with some exceptions for trainees and young workers starting out, and said the minimum wage should apply to all workers from 16 up.

Sir Roger says the minimum wage stops employers taking on young workers, while those who support it argue it is unfair to differentiate pay rates based on age and say there is little evidence of a link between youth rates and unemployment.

Maritime Union national president Phil Adams attacked Sir Roger's bill, which was drawn from the ballot yesterday, and said the MP needed to "retire now before causing more harm".

"If he is so worried about younger workers, he could move aside and that would open up a job opportunity for a young worker with relevant ideas who is living in the real world."

Mr Adams said that when New Zealand had a highly regulated economy and unionised workforce in the 1950s and 1960s it had high rates of economic growth and low unemployment, but that changed when free market economic policies were introduced.

He said training costs should be carried by employers.

The Council of Trade Unions said that at $12.75 the minimum wage was already low, and expecting any group to work for less was grossly unfair. It said any moves to have youth rates reintroduced would be fought hard by unions.

Engineering, Printing and Manufacturing Union national secretary Andrew Little said before the bill was introduced that it would reintroduce wage discrimination against workers aged 16 to 18.

"The idea that the way to reduce youth unemployment is to pay young workers less is the kind of discredited economic thinking the civilised world left behind years ago."

- NZPA