Every year we go through the inane performance of debating what level the minimum wage should be set at. Business groups get sucked in and advocate either the status quo or a small increase pegged to the rate of inflation while the usual pinko suspects howl that they are owed a substantial increase.
The question we should be asking is if the government should be setting a minimum wage all?
Purchasing labour is no different than buying any other product or service. If the product or service costs more - you will buy less. If it costs more to hire labour - fewer workers will be hired.
Ironically the low skilled workers that minimum wage legislation is supposed to protect are the ones that are adversely affected.
Government meddling in the trade of labour by imposing price fixing only distorts the market that can more efficiently set a price if left alone.
The numbers of relatively low skilled workforce working for motels can be severally affected by impositions on employment freedoms including minimum wage requirements. Employment legislation is an important advocacy cornerstone for any trade association.
The minimum wage debate appears to be territory where our industry representatives have been historically afraid to tread, so we were encouraged by a press release issued by the Motel Association of New Zealand (MANZ).
MANZ Chief Executive, Michael Baines stated
“We would ask the Government to show restraint in looking at any movement in the Minimum Wage”And
“This is a far more complex issue than is being portrayed. Small businesses have only two choices they either cut workers hours to suit their wage budget and pick up the work gap personally or they take less return themselves”
"We urge the Government to exercise common sense and keep the Minimum Wage at its current level”We would have suggested that the government should cease control of wage fixing altogether, however it is pleasing to see that MANZ have established a position and are speaking out against an important issue that directly affects running a motel business.
Source: Click HERE
