“Chris Hipkins has a chance to show he understands the pain businesses are feeling by hitting pause on further minimum wage increases”, says ACT Leader David Seymour.
“Chris Hipkins has a chance to show he understands the pain businesses are feeling by hitting pause on further minimum wage increases”, says ACT Leader David Seymour.
“While both Labour and National are now saying they would put the minimum wage up, about 30 per cent of retail businesses aren’t sure they will survive the next 12 months.
“The minimum wage has increased by an astonishing 35 per cent since Labour took office. Worker productivity has increased by just 5 per cent over that period. Small businesses simply can’t sustain another hike.
“Further increases will mean businesses going under, job losses, or fewer hours being offered – all of which hurts workers. There’s no magic money tree.
“The Government’s delay in announcing the new minimum wage is also creating uncertainty for businesses.
“ACT has called for a three-year moratorium on minimum wage increases to give small businesses a breather.
“Forcing businesses to pay a wage that’s higher than the contribution a worker makes is nonsensical. It ultimately locks young and unskilled workers out of the labour market, preventing them from getting the skills they need to grow and succeed.
“Chris Hipkins has said he wants a closer relationship with business. Here’s his chance to show he gets it.”