Wednesday, Apr 3, 2019
Since Sept 27, 1879
Retail $2 Home delivered from $1.25
THE INDEPENDENT VOICE OF MID CANTERBURY
Ds win DV
Stars in his eyes
P5
Minimum wage hike forces cuts By Susan Sandys
susan.s@theguardian.co.nz
An Ashburton café owner says she has had to make staff cut backs following minimum wage increases. Mid Canterbury businesses are divided on Government increasing the minimum wage to $17.70 per hour, a figure set to rise to $20 by 2021. The café owner, who did not want to be named, said the increase had resulted in her giving reduced hours to her employees. She felt this had been the only recourse of action in the face of not being able to increase costs to customers. “We can’t put our prices up 10 per cent to compensate,” she said. The Government says the rise reflects its commitment to improving the well-being and living standards of all New Zealanders, but the Opposition claims some 8000 jobs may be lost. Bob McDonald at Health 2000 believed the increase would result in job losses in the district and an increase in the cost of living. And it would put pressure on employers to up wages
overall. “It will force good employers that are paying $2 to $3 above the minimum wage up to $20, you can’t have someone walking in brand new out of school starting on the same money.” School leavers would find it harder to get jobs. It would lead to some winding their businesses down, and paying people under the table. Mid Canterbury café employee Sharlene van Leerdam said she believed the increase did not make sense for people aged under 18. The mum of four was happy to be earning above minimum wage herself, but believed the increases would put pressure on businesses to up all wages. “When kids are put to $20 per hour, that’s horrendous, it just puts a lot of pressure on the employers.” Federated Farmers Mid Canterbury president Mike Salvesen said small producers in Mid Canterbury, as well as casual labour users, would be hit quite hard.
CONTINUED P3
Ph 03 307 7900 to subscribe!
A community built around people.
VILLA NOW AVAILABLE Don’t miss out on your opportunity to join the Rosebank village community. To view our facilities at 77 Walnut Avenue, Ashburton contact Sue Prowse 03 308 0111 or sue@rosebankhosp.co.nz
www.rosebankvillage.co.nz