The minimum wage for workers will increase by 50c on April 1st. At the moment it is $13.75. It will increase to $14.25. People who are being trained at work will get $11.40. The Prime Minister, John Key, said that employers will probably be able to pay that extra 50c an hour but if the increase was too high, this could close down businesses.
The Council of Trade Unions wanted $15.50 because the economy has improved and workers’ pay has not increased enough over the years. Some businesses are making good profits – for example, farming, forestry and supermarkets – so they could pay more.
David Cunnliffe, the leader of the Opposition, said that if Labour wins the next election, the minimum wage will increase to $15 an hour during Labour’s first 100 days and another increase in the first year.
The Living Wage Aotearoa New Zealand website says that businesses need to pay a living wage. For a family with 2 children, one adult working full time and the other adult working part-time, they need a living wage of $18.80. If people are well paid, they can spend more and this puts money into the economy. The Wellington City Council voted to pay their workers a living wage.
Listen to April 1st 2011 to hear more about the minimum wage.