Sharples Pita: Minimum Wage and Remuneration Amendment Bill — Second Reading 
Sharples Pita: Minimum Wage and Remuneration Amendment Bill — Second Reading 
[Volume:647;Page:16183] 
Dr PITA SHARPLES (Co-Leader—Maori Party) 
: 
 A report hit the headlines yesterday that should be compulsory reading alongside this Minimum Wage and Remuneration Amendment Bill. The  
Growing Pains: Evaluations and the Cost of Human Capital 
 report described an underclass of New Zealanders: those who constitute the highest number of unemployed in every age group; those who are disproportionately more likely to be in the lower-income bands; those whose median income is a shattering 78 percent of the national average. The report describes such workers as likely to be working in forestry construction courier services transport labour hire personal care pamphlet delivery and other industries where the contract workforce is regularly exploited through unfair contracting. 
The question was raised by Chris Tremain that a Minister was not present in the Chamber. The bell was rung and the Speaker declared that a Minister was present. 
Dr PITA SHARPLES 
: The  
Growing Pains 
 report gave this group a name—“Pacific”. Pasifika communities were described as being more heavily represented in the less specialised lower-skilled occupational groups. The report’s author summed up by suggesting that the Pacific Island population was less productive and less likely to contribute to economic growth. It may come as a surprise to some but tangata whenua share more than whakapapa alone with our Pasifika whanaunga. Our employment and income position bears a close resemblance to that profiled in the  
Growing Pains 
 report. Indeed when we look at average earnings we see that while Europeans are on $20.91 per hour Pasifika people sit at $16.31 with tangata whenua earning barely a dollar more. 
This bill sets out to amend the Minimum Wage Act 1983 so that it applies to people under a contract for services and ensures they get at least the minimum wage. We in the Maori Party believe that all jobs should have minimum wage protection so that all workers are paid at least the minimum wage. What is more we go further and suggest that the minimum wage should be raised to $15 an hour. We tautoko we support the call issued by the Council of Trade Unions that the minimum wage should be lifted to at least two-thirds of the average wage so we suggest that the minimum wage should be $15 an hour. The Council of Trade Unions had the very inspiring message that if we are really dedicated to our pursuit of economic transformation low wages cannot be tolerated. Low wages can trigger a cycle of disadvantage that cascades into poorer housing worsening health lower educational achievement fewer employment prospects greater economic insecurity family stress and worse. 
As we approach Budget day it is blatantly apparent that despite all the crowing about the so-called high-income high-skilled and highly productive economy an undesirably large proportion of New Zealanders earn a lower income than we would expect. We call these people Pasifika; we call these people Maori; we call them contractors. They do not volunteer to live in poverty. They are dragged in a downward spiral by an economic system that does not care to protect their rights. What is more we are very aware that wage inequality is growing. Take for instance the salary of the average chief executive. In 2000 a chief executive officer could expect to earn eight times the pay of the average worker. By 2006 just 6 years later that pay packet was a whopping 19 times as big as that of the average worker. 
The people my colleague Hone Harawira refers to as the lumpenproletariat—the cleaners caregivers call centre workers teacher aides hospital aides clerical workers and workers in the retail and hospitality industries—are all struggling to cope on a bare minimum wage. It is little wonder that the Electoral Enrolment Centre announced yesterday that the number of New Zealanders who have left our shores for overseas is 35 percent higher than before the last election. In particular we recognise the impact of the net outflow of people to Australia at 30600 for the year ended in April. What is there to stay for when so many New Zealanders are being subjected to the economic violence of low rates of pay? 
Even lower than low are those people engaged as contractors who are treated to few of the protections of employees and who are paid at a rate that is less than the minimum wage. The workers who are the focus of this bill are perhaps the most vulnerable of all workers. They are not covered by the Employment Relations Act or by the Minimum Wage Act. Their rights—if we can call them that—are wrapped up in commercial law. Their relationship is deemed to be a commercial one without any provision for minimum remuneration. Members of this House whose stock response to policy dilemmas like those in this bill is to say that the market always provides would no doubt say that contract workers could still benefit from employment law if they took their case to court. Sure they could—if they had sufficient resources to pay the legal fees to do so. Yeah right! 
This bill is in its very essence about the application of core principles and kaupapa. It is about promoting and supporting full and meaningful employment. It is about supporting pay and employment equity legislation. It is about supporting the development of a user-friendly minimum code of employment conditions. It is about being worker friendly rather than perpetuating discriminatory practices. Paying lower minimum wages to one group of workers undermines the principles of non-discrimination and is simply not justifiable. Supporting this bill is in effect upholding international human rights instruments such as the International Bill of Human Rights. This bill is about nothing more threatening than the well-worn catchphrase “equal work for equal pay”. The bill provides us with an opportunity to support the right of all workers to receive fair and non-discriminatory remuneration for work of equal value. 
We have had enough of analysts and economists telling us that systematic inequalities and ongoing disparities are merely the growing pains of an evolving nation. We say instead that a fully maturing nation would set minimum benchmarks around remuneration whether or not those employed are on contracts for services contracts of service or employment contracts. Our expectation is of course fuelled by the unanimous agreement reached around the House last night when all parties confirmed support for some basic protections for all new members of Parliament. As they say what is good for the goose is good for the gander. 
The Maori Party is happy to support this bill in our desire for protections to be put in place and in order to ensure that the Minimum Wage Act 1983 actually has the teeth to mean something to any person working under a contract for services. The Maori Party supports this bill.