Radio New Zealand - Te Reo Irirangi o Aotearoa

Union holds GST rise protest

Updated at 1:24 pm on 14 February 2010

A union representing people on the minimum wage held a series of protests around the country on Saturday, campaigning against a possible rise in GST.

The Government wants to raise GST from 12.5% to 15%.

The Unite union says groups of about 50 people protested outside the offices of National MPs in several main centres.

A campaign officer for the union, Joe Carolan, says the Government must raise the minimum wage further than the 25 cent increase announced last month. The current figure is $12.50 an hour.

Mr Carolan says a possible rise in GST is just adding insult to injury for low paid workers.

"We've been out campaigning for a living wage. We've gathered over 100,000 signatures, initiating a referendum, because the majority of people in New Zealand actually support the concept of a living wage.

"If you work hard for 40 hours a week, you should have enough for yourself and your family without getting into debt."

An employer organisation says the latest figure for youth unemployment is a good reason to bring back youth rates.

With more than 72,000 people between the ages of 15 and 24 out of work, the unemployment rate for this age group is 18.4%.

The Employers and Manufacturers Association says employers warned MPs that abolishing a lower minimum wage for 16- and 17-year-olds would hurt the very people they were trying to help.

Association spokesperson David Lowe says that there has to be an incentive for employers to hire teenagers when they could choose more experienced staff. He says abolishing youth pay rates when jobs are short won't work.

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