Retailers Association

Nat's benefit policy stirs debate

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Business groups have welcomed the National Party's election policy on benefits but advocacy groups say there's cause for concern.

Under the policy, those on the DPB will have to work or train for fifteen hours a week, once their youngest child turns six, and people on sickness and invalid benefits who have been assessed as being able to work part-time.

"When the children are at school and not during the holidays, I think they should be doing something for themselves," says National leader John Key.

Long-term unemployed people will also have to re-apply for their benefits if National wins the election.

However the party's policy is not popular with some, including a 31-year-old solo mother on the DPB. The solo parent, who wants to remain anonymous, says National's proposals may prove to be too harsh. "It's putting so much strain on the families, and the parents. And you want to be able to be a good parent, you want to be able to be there for them when they come home from their day at school," she says.

Social Development Minister Ruth Dyson says the National policy will take New Zealand backwards. She says the approach is punitive and last time a similar approach was tried it resulted in an unacceptable rise in child poverty. A National-led government last introduced a controversial work for the dole scheme for sole parents and other beneficiaries in the late 1990s.

The Ministry of Social Development did a review of that scheme. It found many single parents wanted to enter the workforce and more of them did go off the benefit.

But there was not enough administrative support and parents had trouble finding childcare. Critics are concerned those problems could arise again. Some people's advocacy groups echo similar sentiments. "You want failure, you introduce work-test sanctions for DHB and the only people that will suffer are the children," says Paul Blair, Rotorua's People's Advocacy Centre.

There are also concerns that solo parents will just end up in low paid jobs. "By forcing out mothers into minimum wage labour so they can provide cheap labour for John Key's big business round table mates. They won't earn much more on their benefit...and the kids get inferior childcare and supervision," says Blair.

Despite drawing criticism from some advocacy groups, businesses say it's a way to create a productive labour market. Several business and employment groups have welcomed the policy, saying they support the principal of getting able-bodied people back into the workforce.

They say there is a demand for workers in retail, banking, and the hospitality sectors. "Even if employment is easing somewhat, retail always needs a large pool of people to keep it ticking over," John Albertson, Retailers' Association.

Meanwhile political scientist Therese Arseneau says National's policy will attract some voters and send other voters back to Labour. She says that National has finally adopted an election strategy suited to winning an MMP election. "It has softened its rhetoric, moved towards the centre on several key policy issues and challenged Labour for the crucial centrist swing vote. In 2008 National's strategy is intended to grow its vote primarily at Labour's expense," she says.

Easter trading a step closer

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New Zealanders may gain a public holiday with all the shopping they want as the Government prepares to launch a debate over Easter Sunday.  The Weekend Herald has learned a public discussion document will be released soon giving options for what should be allowed on the day.

Easter Sunday is not classified as a public holiday under the current law and most shops are closed. Easter Monday is already a public holiday, on which shopping is allowed and penal rates apply for those who work. 

Labour Minister Ruth Dyson said the options were being put forward to address "inconsistencies" in the holiday, shopping and sale of liquor laws.  One of the options is to remove trading restrictions and to make the day a full public holiday - increasing the number of public holidays to 12.  This means those working on Easter Sunday would enjoy the benefits in pay and lieu time that apply to public holidays such as Good Friday.

But National Distribution Union secretary Laila Harre said the fundamental issue was that shopping should be the exception rather than the rule on Easter Sunday.  The primary purpose of a public holiday was to stop people working, "not to compensate them for working".

Retailers Association chief executive John Albertson said a clear majority of its members wanted the right to open their doors on Easter Sunday.  The association did not support making Easter Sunday a public holiday.  Retailers would rather offer employees their own terms for working on the day, with workers free to say no.

Catholic Church communications director Lyndsay Freer said the church would be loath to see Easter Sunday "commercialised".

Other options in the discussion document will include keeping the current restrictions on trading and on the sale of liquor on Easter Sunday, or allowing geographic exemptions to trading for areas such as holiday resorts.

Mayors back $12 minimum wage

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New Zealand's mayors want the Government to raise the minimum wage to $12 an hour sooner than it plans so as to help young people into skilled trades.

The Mayors Taskforce for Jobs, representing 91 per cent of mayors, says lifting the legal minimum from $9.50 an hour to $12 would encourage "greater investment in skill training leading to increases in productivity".

In a submission to the new Minister of Labour, Ruth Dyson, they say minimum wage increases of 36 per cent for adults, 81 per cent for 16- and 17-year-olds and 126 per cent for 18- and 19-year olds since 1999 "have not resulted in constraints on job creation or fewer opportunities for young people".

But three of the 10 groups that have made submissions on this month's annual minimum wage review - Business New Zealand, Federated Farmers and the supermarket industry - are urging Ms Dyson not to increase the minimum wage at all.

A fourth group, the Retailers Association, supports "a modest increase" in the adult rate in line with other recent wage increases, but opposes any further increase in the youth rate for 16- and 17-year-olds, currently $7.60 an hour.

The Government agreed with New Zealand First and the Greens after the election to raise the adult rate to $12 by the end of 2008 "if economic conditions permit".

The Retailers Association says such a big increase would cost its members $760 million a year by 2009, assuming that shopkeepers would have to pass on the full $2.50 an hour increase to all their workers to maintain relativities with those now on $9.50.

"The majority of our members are affected by the minimum wage, either because they employ junior staff at weekends and after school, or they employ extra staff during the busy Christmas and Easter periods," the association says.

"Such an increase in wage rates will have a severely detrimental impact on operating costs for this sector, which ultimately has flow-on effects to the wider society - consumers in terms of increased prices, employees in limitations of opportunities particularly for part-time and student workers, and unnecessary economic impacts with additional inflationary pressure."

It said the average wages paid to entry-level shop assistants in February were $10.56 an hour for those aged 18 and over and $8.56 for 16- and 17-year-olds.

In contrast, the national average wage for the whole economy in September was $21.13 an hour.

The National Association of Retail Grocers and Supermarkets says its stores give many youngsters their first jobs. But such openings could be lost if the minimum wage were to be increased.

The association says higher minimum wages may cause supermarket owners to take 20-year-olds in preference to 18- and 19-year-olds because of their greater maturity and better work ethic.