May Day in New Zealand

Today is May Day, the workers' holiday. But in New Zealand a new form of feudalism is being introduced, with low wages and no rights for workers. In recent days it has transpirs that NZ has one of the worst records for industrial accidents

Protest as youth rates come into force

BusinessNZ has attacked unions taking industrial action over youth rates, claiming the new ''starting out'' wage will help the young

Stuff,

1 May,, 2013

The youth wage - $11 for six months - is 80 per cent of the $13.75 an hour adult minimum wage.

Pak N Save's Royal Oak supermarket has been the target of protests linked to the reintroduction of lower wages for young workers this morning, as well as the break down of wage talks with the FIRST Union.

But BusinessNZ chief executive Phil O'Reilly said picketing against a lawful activity ''is not what unions should be doing", claiming it damaged the employment prospects for the young.

He defended youth rates.

"A young unskilled person is disadvantaged in competing against more experienced and trained people in the labour market. Starting wages help young people gain experience and better equip them to be able to compete on stronger terms."

'STARTING OUT' WAGE

The new ''starting out'' wage mean employers can, from this morning, International Workers Day, pay 16 and 17-year-olds 20 per cent less, as well as 18 and 19-year-olds who have been on a benefit for six months.

"It will give employers a real incentive to take on our youngest and most inexperienced workers and provide them with the skills and work experience they need," Labour Minister Simon Bridges said in February.

But unions and Opposition MPs have attacked the plan, claiming there was no evidence the new rates would stimulate employment and would instead simply lower the living standards of the lowest paid workers.

A number of major chains have already vowed not to introduce the new rates, but Pak n Save and its owners Foodstuffs has become a target for action, after confirming it was interested in using the lower rates.

This morning FIRST Union members from Pak n Save Royal Oak were stopping work and will meet with workers from five other Pak n Save supermarkets, and from Foodstuffs' two Auckland distribution centres, the union said in a statement.

As well as protesting against youth rates, the protest also focuses on the breakdown of pay talks which have been underway since September, said Maxine Gay, retail secretary for FIRST Union.

"In all these months they have offered no payrise, and are trying their hardest to bring in youth rates."

Today's protest will be attended by a number of advocacy groups.

Sarah Thompson of Auckland Action Against Poverty claims that while the wages were aimed at the young, they would be used to lower pay generally.

"We know that as time goes by older workers will simply be displaced by younger ones at lower wages, shuffling people on and off the dole queue,'' Thompson said.

The Engineering, Printing and Manufacturing Union's assistant national secretary Ged O'Connell said employers should focus on good selection and training rather than taking a chance.

''They're sort of putting young people in a lottery. What that means is they can pay them less, take a chance, put them on the job. If it works, that's great, if it doesn't work they sack them and get rid of them and do it at a low cost.''

Opposition MPs have also attacked the plan, with Labour's Darien Fenton dubbing the bill ''draconian''.

"Paying young workers to do the same job less just because of their age is discriminatory and unfair and will have little, if any, impact on youth employment levels,'' Fenton said in February.

As usual, the Radio NZ headline gives prominence to the government position

PM defends lower youth pay rate

Prime Minister John Key is defending the new youth wage, saying there is a group of people that need a helping hand to get a job.

Radio NZ,

1 May, 2013

From Wednesday, employers will be able to pay 16- and 17-year-olds and people aged 18 and 19 who have been on a benefit for longer than six months a lower rate.

The starting out wage will be set at $11 an hour, which is 80% of the adult minimum wage ($13.75).

The Government says the move is to encourage employers to take on young workers who might not otherwise have been given the opportunity.

Opponents have criticised it as a backwards step for industrial relations, but Mr Key said the lower wage tips the balance in favour of young people.

"For a lot of employers, they will go out there and say, 'I'm going to give somebody a go that's been in the workforce before' and so the balance is against that younger person. That's very disheartening for them - they are good young people, they just want a chance.

"So I think it's got to be seen in perspective - the vast overwhelming bulk of youngsters actually won't go on a starting out wage."

Mr Key said when youth rates were abolished in 2008, it put thousands of young people out of work.

Business New Zealand believes the new pay rate will encourage employers to hire young people and give them work experience and skills.

Chief executive Phil O'Reilly said it provides an incentive to employers. And if young people don't get on the employment ladder, it causes significant social problems.

However, Council of Trade Unions president Helen Kelly said the change will impoverish young people who are already in unstable, poorly-paid jobs and working long hours.

James Sleep of the Same Work, Same Pay campaign said the new rate would create genuine hardship for young people and the Government needs a strategy to create jobs and boost wages for young people.

Supermarket targeted in protest

A supermarket retail chain was targeted by unionists over youth rates on Wednesday. Two dozen people joined a First Union protest outside a Pak'nSave store in Auckland.

Spokesperson Maxine Gay said the introduction of youth rates will see older workers displaced by younger ones.

Pak'nSave spokesperson Antoinette Shallue said there has been no decision yet to introduce youth rates. However its parent company Foodstufffs says it is open to new initiatives to boost youth employment in its stores.