6 Apr 2013

RBL sticking to minimum wage

7:00 am on 6 April 2013

Restaurant Brands Ltd, which owns KFC, Starbucks and Pizza Hutt, says it will keep paying the minimum wage, instead of a lower youth rate for teenage employees.

Youth rates are being reintroduced next month allowing employers to pay 16 to 19 year olds 80% of the minimum wage of $13.75.

Restaurant Brands said it will stick with its current higher rates because it invests time and money in training young employees in the hope that they will stay with the company for several years.

The Same Work Same Pay coalition of unions and political groups said other companies such as Pak'nSave and New World should do the same.

The Government argues the starting-out wage will help create jobs by encouraging employers to take on young people.