Public to have say on scrapping youth wage rates

The Government has opted to test the public mood on scrapping lower youth minimum wage rates, assuring that a bill aiming to axe the rates will pass its first parliamentary hurdle.

The member's bill, drafted by Green Party MP Sue Bradford, is expected to be debated for the first time next week. It proposes to end youth rates which are now set at $7.60 an hour - 80 per cent of the $9.50 adult minimum wage. Instead, the adult minimum wage would apply to all workers.

Labour Minister Ruth Dyson yesterday said Labour MPs would vote to send the bill to a select committee and Ms Bradford said it also had the support of United Future and Maori Party MPs.

That guaranteed the public would get to have its say in front of a select committee.

Ms Dyson said Labour had a track record of supporting rises in the minimum wage.

"Positive though these moves have been, it is obvious that there is a debate to be had on the suitability of paying workers at a different rate for the same job just because of their age. We support that debate being had through the select committee."

Ms Bradford said the current differential in rates was unfair and amounted to age discrimination.

"We've already got rid of race and gender discrimination ... but we've still got this age discrimination which just doesn't make sense."

She disagreed with lobbyists who said that abolishing youth rates would mean fewer jobs, as employers would not be able to afford to pay the minimum wage across the board.

She said if an employer could not afford to pay the already low minimum wage of $9.50 an hour they should not be in business.

However that rate will rise over the next three years, with the Government hoping to raise it to $12 an hour if economic conditions permit. Before Christmas, it said the minimum wage would rise from $9.50 to $10.25 from March 27.

The Minimum Wage (Abolition of Age Discrimination) Amendment Bill is expected to be debated on Wednesday next week.

- NZPA