Proposed Referendum Wording
"Should the minimum wage be raised to $25 a hour and then in steps over the next three years until it reaches two-thirds of the average ordinary time hourly rate as recommended by the 1973 Royal Commission into Social Security"?
Unite
Union National Secretary Matt McCarten has submitted a request to the
Clerk of the House for the right to petition for a referendum on
raising the minimum wage to two-thirds of the average wage.
Unite
Union which represents many minimum wage workers says the recent
50-cent a hour increase, while welcome, is barely enough to cover the
cost of living increase. “In real terms it is a cut for our members
as the money they spend most of their incomes on are things like
food, power, transport and housing which have risen much faster than
the overall CPI”, said Mike Treen Unite National Director.
“We
need steps to restore the minimum wage to the two-thirds of the
average wage which was the level implemented after the 1973 Royal
Commission on Social security. This is also the level recommended by
the International Labour Organisation. If the minimum wage had stayed
at that level it would be worth $16 an hour in today’s dollars. The
fact that it was allowed to drop to one third of the average wage
under National and has only got back to half the average under Labour
is a legacy of the policies that have produced a low wage economy in
New Zealand.
“We
believe the minimum wage should be increased by at least $1 an hour
each year until it reaches 2/3 of the average wage. These steps will
increase purchasing power in the economy by directing help to those
who need it most. The economic crisis facing the world is the toxic
product of insatiable greed at the top and the free-market policies
of governments that removed all controls. The end result is a skewing
of income and wealth so that the rich got richer and the poor fell
off the edge.
Socialist
Appeal welcomes and supports this campaign to raise the minimum wage.
However,
such Citizens Initiated Referendum as this is not binding on the
government, and no doubt if successful will fall on deaf ears.
It
is pleasing to note that other unions are getting behind the
campaign. To be guaranteed of success the campaign must back it up,
when necessary, with co-ordinated industrial action.
This
is a role for the CTU in organising such action. One things is clear
if the present leadership of the CTU is not up to the task ahead of
them then the new layer of unionists who will become active in the
next period will move to replace them with leaders that will.