Maori Party unhappy with small minimum wage increase

Prime Minister John Key's announcement that there is likely to be a "moderate adjustment" to the $12.75 an hour minimum wage is disappointing, the Maori Party says.

Mr Key yesterday said the issue of the minimum wage was expected to be addressed by Cabinet in the next few weeks.

"My guess is there is likely to be a modest adjustment, but one that reflects the economic conditions of the time."

He agreed 2 percent was a likely ballpark figure for the increase, leaving minimum wage earners about 25 cents better off.

Maori Party co-leader Pita Sharples said increasing the wage was critical in reducing poverty and addressing benefit dependency.

"What is the point of working if you're earning only slightly more than what you would get on a benefit?

"The Maori Party has always supported a minimum wage of $15 per hour because this is the minimum amount any worker needs to have an adequate standard of living."

Given the increasing cost of food, GST and petrol, Dr Sharples said it was particularly important the wage be increased significantly.

"To continue to address the minimum wage with only incremental increases tied to the Consumer Price Index will mean that we will not reach the $15 mark until 2019. And that's just not good enough."

 

 

 

 

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