'An increase to the rate makes a real difference to people on the poverty line'
The New Zealand government is facing pressure to continue the wage hikes started by the previous administration to keep workers afloat amid the cost-of-living crisis.
The New Zealand Council of Trade Unions (NZCTU) said on Monday that the minimum wage needs to hit at least $23.67 to ensure that minimum wage earners do not take a pay cut in real terms if inflation hits the projected 4.3%.
The minimum wage in New Zealand is currently at $22.70, a 44% increase from the $15.75 in 2017 - and the NZCTU said the government should keep this momentum going.
"We urge the government to have a heart and do the right thing by those earning the least and maintain the momentum of the last few years – now more than ever that should be a priority," said NZCTU president Richard Wagstaff in a statement.
Wagstaff pointed out that many of minimum wage earners come from Māori, women, Pacific Peoples, disabled, and other disadvantaged groups.
"An increase to the rate makes a real difference to people on the poverty line," Wagstaff said. "These are also the very people doing it tough in a cost-of-living crisis and this government has made it a priority to support people through these challenging times."
Minimum wage ‘another test’ for new government
Wagstaff said the increase in the minimum wage will be "another test" for the new government.
"In the absence of FPAs, large scale collective bargaining, the minimum wage is assuming greater and greater importance over time, as more and more Kiwis are employed on it," the NZCTU president said.
The NZCTU previously slammed the government for repealing the Fair Pay Agreement legislation.
"This government is off to a horrific start. Every policy they have up for repeal will do untold damage to marginalised Kiwis. We deserve better," Wagstaff said in a previous statement.
It hosted last week a day of action against the move and sought nearly 15,000 signatures for a petition they presented to members of Parliament from the Labour and Green Parties.
Wagstaff said the absence of FPAs will disproportionately impact the most vulnerable members of New Zealand's workforce.
"Not only will repealing FPAs hurt workers, but it could also violate our obligations under our trade agreements with other countries," the NZCTU president said.
