Youth MPs have voted in favour of a mock-bill to abolish the starting-out wage for young people.
The simulated legislative debate was at the forefront of this year’s edition of the Youth Parliament, which takes place once every three years, allowing a diverse group of young people from all regions of Aotearoa New Zealand to represent and advocate for the issues they are most passionate about in Parliament.
Cam Fraser, Youth MP representing Ingrid Leary in Taieri, gives his speech on the mock bill during Youth Parliament 2022. Photo: Alana Rae
The Minimum Wage (Starting-Out Wage Abolition) Amendment Bill was drawn from among a range of mock bills in Parliament’s traditional biscuit tin. The legislation seeks to “resolve the age-based discrimination in the Minimum Wage Act 1983” which currently allows for a starting out wage of 80% of the current adult minimum wage for youth aged 16 - 19.
The mock bill proposed amending the principal Act to abolish the starting-out wage rate, which specifically means repealing section 4A of the Minimum Wage Bill – known as ‘Prescribed minimum starting-out rates of wages’.
This section currently allows employers to pay a ‘starting out wage’ for new employees aged 16-17 years old at a minimum of 80% of the adult minimum wage. That means as little as $16.96 per hour when starting a new job. Also, under current law, 18-19 year olds who have received a benefit in the past six months before starting their job are eligible to receive the starting-out wage for their first six months of employment. However it all falls well short of the minimum wage which has recently been increased from $20 to $21.20 per hour.
Alicia Lemmer, Youth MP for Erica Stanford in East Coast Bays states her opposition to the mock bill at Youth Parliament 2022. Photo: Alana Rae
'Outright discrimination'
Cam Fraser, the Youth MP representing Ingrid Leary, the MP of Taieri electorate, spoke in support of the mock bill. He said the starting-out wage negatively impacted the lives of rangatahi in New Zealand, “particularly for those who very desperately need the money, it’s just getting rid of extra money for practically no reason”.
“This is outright discrimination against young people.“ Fraser added.
“There are young people and young families who need this money, especially in socio-economically deprived areas like parts of South Dunedin, in my own electorate in Taieri. To them, this money is heating, rent or baby formula,” he explained.
On the other hand, Alicia Lemmer, Youth MP for Erica Stanford, National MP from East Coast Bays, was against the passing of the mock bill. In her speech she said that “it is not age based discrimination but is based on work experience. Put simply, people with more skills get paid more for their qualifications”.
“The starting wage is only temporary and there are policies put in place to ensure it is not exploitative. If this act was to be abolished and everyone was paid the same minimum rate, there would be fewer entry-level jobs for youth, as employers would hire workers with experience,” Lemmer said.
Youth MPs during the personal vote on the mock bill at Youth Parliament 2022. Photo: Mishka Lombaard
During the debate, other concerns were raised that were beyond the scope of the mock bill. The Youth MP representing Anna Lorck in Tukituki, Keelan Heesterman, suggested a 0% tax rate for young workers. Ayolabi Martins, Youth MP representing Vanushi Walters in Upper Harbour, also pointed out that despite an announcement to scrap the policy that allows disabled people to be paid below minimum wage, the current government has not acted on this.
The ayes have it
Overall, 23 youth MPs gave a speech about the mock bill – with 20 in support and 3 opposed.
After just over an hour of fierce debate, the Youth MPs voted on the mock bill. The end result was 97 in favour, 19 against, and 3 abstentions– a decisive victory for those wishing to abolish the starting-out wage.
This result will be seen by many of the adult counterparts of the Youth MPs, sending a strong message of what rangatahi believe needs to change about the rights of young workers. In a time where financial pressures increasingly dominate everyday life, it remains to be seen whether Parliament will act on the youth voice displayed today.
*Gryffin Powell is a member of the Youth Press Gallery which takes the role of independent media reporting on Youth MPs and Youth Parliament 2022. This article can be republished freely on your platform subject to the following conditions:
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- It must include the following attribution to RNZ as the copyright owner: This story was originally published on RNZ and is republished with permission.
