Youth wage introduced by Govt

Young people will be paid as little as $10.80 an hour under the Government's new youth wage being introduced in April next year.

The Government has acted on an election promise, saying it will create demand for young people by giving employers an incentive to take them on.

It will cover 16 and 17-year-olds in their first six months in a new job, 18 and 19-year-olds starting work after more than six months on a benefit, and 16 to 19-year-olds who are in industry training.

Labour minister Kate Wilkinson says the wage will apply for a blanket six months after starting work with a new employer.

"It will create demand for eligible 16 to 19 year olds, by giving employers a real incentive to take them on. It will help some of our youngest and most inexperienced workers get that much needed foot in the door."

But the Service and Food Workers Union is calling the wage, which is 80 percent of the minimum wage, 'poverty pay'.

National Secretary John Ryall says the current minimum wage is already too low for anyone to live on.

He says there's no evidence that reducing the pay rates for some workers to do the same job, creates jobs or gives young workers skills.

Mr Ryall says it's about providing cheap labour in a country where wages are already too low.

Labour leader David Shearer says over 21,000 New Zealanders aged 18 to 30 have left for Australia this year and this policy will only see the trend worsen.

"They're not going to stay in New Zealand, we've already got record numbers of young people going to Australia, it's just going to to accelerate those numbers leaving New Zealand rather than staying here."

Photo: NZ Herald