Dyson Ruth: Minimum Wage (Abolition of Age Discrimination)Amendment Bill — Second Reading 
Dyson Ruth: Minimum Wage (Abolition of Age Discrimination)Amendment Bill — Second Reading 
[Volume:640;Page:10709] 
Hon RUTH DYSON (Minister of Labour) 
: 
 It gives me pleasure to support this Minimum Wage (Abolition of Age Discrimination) Amendment Bill at its second reading. I begin by congratulating Sue Bradford from the Green Party on taking the initiative introducing the bill to the House and stimulating the debate at the Transport and Industrial Relations Committee. I also acknowledge and thank the other members of the select committee for their rigorous consideration of this issue. 
Since Labour was elected to lead the Government at the end of 1999 our Government has reviewed then raised both the minimum youth and adult minimum wage annually and that is a fact that I am very proud of. Under the previous National Government the youth minimum wage was set at 60 percent of the adult minimum wage. Our Government increased this to 80 percent of the adult rate and we also lowered the age of entitlement for the adult rate from 20 years as it was under previous National administrations to the 18 years that it now is. Prior to that one had to work on the youth rate if one was on the minimum rate right up to the age of 20 rather than 18 as it is currently. 
It is my view that those steps have been very positive but it is still obvious that there is a debate to be had about the suitability of paying workers at a different rate for the same job just because of their age. That debate has in part been held at the select committee and it is now continuing. 
Labour recognises that employees who are aged 16 and 17 often do the same work as adults. Therefore for those employees to earn 20 percent less than their adult colleagues is unfair. In employers’ submissions to the committee considering the bill it was noted though that 16 and 17-year-old workers often lack the work socialisation skills that older workers have. Submitters also noted that they did not think it was fair that youth supervisors were paid less than the adults they were supervising. 
 In response to the submissions and within the original intent of the member’s bill the Transport and Industrial Relations Committee has proposed that for the first 200 hours of their employment 16 and 17-year-olds should be paid at no less than 80 percent of the adult minimum wage. After that 200-hour period 16 and 17-year-old employees will be paid the adult minimum wage. Those 200 hours of employment can be accumulated across several different employers. 
The previous speaker talked about increased compliance costs as if this strategy would be a new trigger. Actually the strategy changes the trigger from a requirement of 2 full years of work and the date of one’s 18th birthday to a requirement of 200 hours of work which even for a part-time worker is a significant step forward. Concerns that those younger workers who are in positions of responsibility would be disadvantaged by the bill have also been answered by the committee’s recommendation that the minimum rate would not apply to 16 and 17-year-olds who are employed as supervisors. 
The enticement of young people away from the education system—from high school polytechs apprenticeships or university—with the possibility of a job that might pay higher in the short term but is unlikely to lead to better career prospects in the long term is an issue. The 200-hour threshold is intended to protect against the possible risk of a negative impact if we were to immediately abolish youth rates completely. 
This measure will be yet another step in our steady progress in ensuring that all workers including young workers have fair minimum-pay protection. This year the youth minimum wage was increased from $8.20 to $9 an hour. This stands in stark contrast to the youth minimum wage of $4.20 per hour under the previous National Government in 1999. 
From Labour’s perspective the voices of employers and unions and the voices of young New Zealand workers should be heard. The Transport and Industrial Relations Committee was an appropriate forum in which to host that debate. I know that the members of the select committee gave fair consideration to both the perceptions and the facts around this debate and I personally thank all the members of the committee for their considered deliberations on this matter. The select committee’s proposals offer a balanced way forward on a complex issue and they address employers’ concerns as well as recognising that younger workers doing the same job as adults should be paid fairly. 
This member’s bill is another example of our Government working with other parties in an MMP environment to achieve the best solution for the diverse interests of all those affected by these proposed changes. I wish the next stages of this bill a very speedy progress.