The Labour Party says it will lift the minimum wage, make trial periods fairer, and set minimum pay standards for each industry if it comes into power in September.
The party released its industrial relations policy today, saying it would ensure that working people received a greater share of New Zealand’s economic growth.
Labour leader Andrew Little said that despite a growing economy, two-thirds of New Zealanders’ wages had not kept up with living costs.
His party is promising to lift the minimum wage by 75c an hour to $16.50. Depending on economic conditions, it wants to eventually lift the minimum wage to two-thirds of the average wage. The average wage is set to rise to about $30.60 next year, meaning Labour wants to lift the minimum wage to at least $20 over time.
The party will also roll out a living wage for all core public sector workers at a cost of $15m, and will eventually extend it to all contractors. The living wage, based on the amount needed to keep up with basic necessities, is $20.20 an hour.
Labour also wants to introduce Fair Pay Agreements, which set a sort of minimum standard for pay and conditions within each industry.
Little said: “These will stop bad employers from undermining wages and working conditions to undercut good employers.
“Fair Pay Agreements will lay out the basic pay and working conditions in an industry, and prevent a race to the bottom.”
He cited the recent pay equity settlement for care and support workers as an example of how companies and workers could co-operate to set base conditions and pay.
To keep a check on employers, the number of Labour inspectors will be doubled to 110, at a cost of $4m.
Labour has dropped its 2014 policy of repealing 90-day trial laws. It will keep trial periods but will give employees recourse if they are unfairly sacked during this time.
It will establish a “referee service”, which has power to reinstate workers or award damages up to a capped amount. It will not involve lawyers and resolution must be quick, the party said.
Labour’s policy document said the party had always supported trial periods because it gave workers a chance of work. Little said most employers used trial periods fairly, but the 90-day laws had encouraged abuse by a small number of businesses.
Reference: http://www.nzherald.co.nz/index.cfm?objectid=11883657&ref=twitter