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Workers 1, Bridges 0: Minimum Wage Rise to Go Ahead

Written By: - Date published: 3:31 pm, March 11th, 2020 - 23 comments
Categories: minimum wage - Tags: ,

Labour Minister Iain Lees Galloway has confirmed that the rise in the Adult Minimum Wage scheduled for April the 1st will go ahead. PM Jacinda Ardern had suggested it would happen earlier in the week. The new rate will lift wages for hundreds of thousands of Kiwis to $18.90 per hour, a rise of $1.20 from the current rate of $17.70 per hour.

National’s current leader had weirdly called for lower waged workers to subsidise the rich in the fight against Covid19. Labour has correctly ignored his bullshit advice. National have also shown their complete ignorance on how economies work by suggesting wage rises are bad for small businesses.

They’re not; the working poor mostly spend their money here in NZ.  Small businesses will benefit from the extra spending power of those receiving minimum pay. That extra cash going round is going to be crucial in safeguarding our retail sector in the next few months, as is Labour’s sensible management of the wider economy.

Needless to say, the minimum wage rise is also a vote winner. By staying positive and caring, the Labour has left little room for National on the road to the 2020 election. It’s probably fair to say that the only part of the electoral highway the right have all to themselves is the gutter.

23 comments on “Workers 1, Bridges 0: Minimum Wage Rise to Go Ahead”

  1. woodart 1

    yes, simon says he wants to help hard working New Zealanders…by denying the lowest paid a helping few dollars, who will spend it all ,,,in New Zealand. where it will go round a few times. trickle up

  2. mickysavage 2

    I am amazed there has not been more kick back on this. Attempting to link minimum wage movements with potential economic displacement due to Corovirus takes so many mental summersaults I feel giddy contemplating it.

    • In Vino 2.1

      I think most people are thinking… how ho-hum and predictable from Soimon (and he deserves the funny name for this one.) Only real dumb righties will sympathise – sad thing is that there are far too many of them.

    • Incognito 2.2

      On the contrary:

      But, some economists say, in a time when the economy is grappling with coronavirus-related disruption, and the Government is planning a support package for affected businesses, holding off on that increase might be the best course of action.

      https://www.stuff.co.nz/national/health/coronavirus/120144707/nobrainer-to-delay-minimum-wage-increase–or-is-it

      • mickysavage 2.2.1

        I agree that it is an opinion that a "no brainer" would consider valid.

      • Muttonbird 2.2.2

        Sharon Zollner, chief economist at ANZ, said it seemed that scrapping the minimum wage rise due on April 1 was a "no-brainer".

        During hard times for businesses, it's particularly important that Government creates an environment where businesses are incentivised – and able – to maintain staffing levels. And that means putting minimum wage rises on hold for the time being.

        Perhaps ANZ might consider what it can do to aid and incentivise business during hard times. I've not been aware of a package ANZ has offered its loyal SME clients in these virus-hit times. Perhaps it could temporarily reduce its lending rate for these businesses.

        I do hope to see all the banks making that kind of publicity rich announcement in the near future.

        I am not really hopeful though, because the bank always wins…

        • Incognito 2.2.2.1

          They are talking with the Minister of Finance.

          • Muttonbird 2.2.2.1.1

            Indeed.

            How refreshing would if be though for the major lenders to offer something, anything to their clients other than foreclosure notices and demands for loan repayments?

            • Incognito 2.2.2.1.1.1

              It is in the banks’ interest [no pun] to keep the economy afloat.

              • Muttonbird

                Would temporarily reducing their own gigantic profit-taking help keep the economy afloat?

                They are a part of the economy, after all.

                • Incognito

                  No, I think that’s the wrong way of looking at banks and what they might do at this time. It is a bit like airline CEOs forgoing part or all of the salary.

      • Chris 2.2.3

        Eric Crampton's got the right idea. He says no large increases. $17.70 to $18.90 isn't a large increase so between him and Tony Alexander everything's swimmingly on track.

  3. gsays 3

    Yes very good news. Cheers TRP.

    This is one of those issues that the opposition will preach to the choir and not gain any votes by opposing it, meanwhile there is a chance that votes may be gained by this sensible, timely adjustment.

    As I have already opined on the OM, if businesses struggle because of the minimum wage, then perhaps we need less of them.

  4. I am amazed the national party still think simon is still credible. Long may that continue.

    • Chris 4.1

      Yes, he's such an oaf – great for the government. But I suspect their calm comes from thinking they've got another Key in Christopher Luxon.

  5. NZJester 5

    I see National has not ruled out a GST increase. This is definitely how they are going to afford their previously announced tax cuts by giving a decrease in the taxes taken from wages but by increasing GST. This method as it did last time they did it will help out those rich National voters by lowering their overall tax amounts paid while putting the burden back on those with lower wages and clawing back any real increase on the minimum wage under the current Labour government if they take back the treasury benches.

    • Incognito 5.1

      The trick is not to rule anything until you have to or when you can score points by taking it off the table. This doesn’t necessarily mean National are contemplating or even considering GST increases in the (near) future.

  6. Jimmy 6

    I think they should delay the minimum wage increase but instead change the lower tax brackets to something like:

    Income 0 – 14,000 tax at 5% (instead of 10.5%)

    Income 14,001 – 48,000 tax at 12% (instead of 17.5%)

    This would give people approximately the same net increase in the hand.

    To offset some of this they could change the other tax brackets and bring in a 39% rate for income over say, $150k.

  7. Observer Tokoroa 7

    Te Reo Putake – you are on the Mark.

    It is such a pleasure to see New Zealanders growing up to full stature and demanding decent wages for the people who do the work. Banks or no Banks.

    We have seen our Banks – which are owned and run by a theiving bunch of ancient australian Crocodiles and deadly spiders – screw every cent out of our hard working Kiwis. Sir Roger Douglas feeding the Ossie Beasts. Sir John Strange Key stoking up Sir William English.

    The smile on the Crocodile Australian Face – is no longer very welcome here. It's the same smile worn by Scott Nasty Morrison. Another pugnacious devious Croc.

    It is a pity that Simon Bridges does not want fair wages. But I suppose his mysterious connections and Money Lust keep him occupied.

  8. infused 8

    its a stupid idea. just delay it at the very least.

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