ACT’s Chris Baillie: Minimum Wage increase brings negativities for 2021

ACT’s Chris Baillie: Minimum Wage increase brings negativities for 2021

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ACT Party’s Small Business spokesperson Chris Baillie says Labour must stop picturing employers as the enemy, and avoid doing any further harm to the productive sector.

“The Government was told its latest minimum wage hike would have a ‘disproportionately large’ negative impact on the number of jobs created over the coming year.

“As a small business owner myself, I know how difficult it has been for SMEs to deal with the virus, the lockdown and a recession. Employers can’t afford one the highest minimum wages in the world, five extra days of sick leave, a new public holiday, and ‘fair pay’ agreements.”


“No business I know of can increase its productivity by 6 per cent year after year. As a result, annual increases to the minimum wage inevitably mean fewer hours being offered to staff or higher prices for consumers.”

Michael Wood, who is Labour’s Minister, was willing to increase the minimum wage by a small margin from $18.90 to $20.00 per hour.

Initially, MBIE had recommended making the minimum wage high during a recession caused by the COVID-19 pandemic would have ‘significant negative effects’ on employers employing workers where it is meant to help.

It is reported that 9,000 more New Zealanders will end up losing their jobs or going on welfare at a time when there’s a forecast of 84,300 jobs being lost in the next year.

“There are few, if any, small business owners inside the Cabinet. As a result, Labour is completely out of touch with how the productive economy works, and New Zealanders are paying the price,” Chris Baillie said.

Image: Chris Baillie

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