95bFM The government’s minimum wage increase is ‘egregious’
April 3, 2025
Interviewed by Sara Mckoy, Adapted by Yesenia Pineda
Unite Union’s Xavier Walsh says the government’s 35-cent increase in the minimum wage does not reflect the cost-of-living crisis, and that the government has a “track record” of not caring for workers.
The minimum wage has recently increased from $23.15 to $23.50, as of April 1st.
The increase of 35 cents is the lowest increase since 2013, when the minimum wage increased by 20 cents.
Minister for Workplace Relations, Broke van Velden, says this is a reflection of New Zealand’s strive to recover from the recent recession and high interest rates.
She says the 35 cents increase comes with the assurance that employers and businesses grow with employment opportunities.
Many have expressed disappointment by this modest increase, over concerns that this will not adequately address those on minimum wage, such as hospitality and retail workers, amidst the cost-of-living crisis.
Co-president of Unite Union; a union representing hospitality and other minimum-wage workers, Xavier Walsh, told 95bFM’s The Wire that the increase falls short of the inflation rate.
“A 35-cent increase is only a 1.5 per cent increase, and inflation is already at 2.2 per cent.”
“What that means for working people is that there’s, in real terms, less money going into their pockets and they have less buying power than they did prior.”
Walsh expresses concerns about the minimum and living wage being different, with the living wage also recently seeing an increase of $1.15 to $28.95.
“When [living wage] is researched and set, it's aimed to provide a basic standard of living, and that rate is a minimum rate in which people can live with dignity in our country.”
“So for the government and businesses to say that ‘we don't think it's appropriate that they should be paid that rate,’ it really shows that they don't care, in my opinion.”
Despite Aotearoa’s higher minimum wage compared to countries such as Australia, Walsh says this does not necessarily mean those on minimum wage have it better in the country.
“If we, say, compare ourselves to the likes of Australia, they have different wage-setting mechanisms, like enterprise bargaining agreements, wherein workers don't just negotiate with their employer directly, they also negotiate across entire industries, which sets different levels of pay.”
So yes, while we may have a higher minimum wage, that doesn't necessarily mean that wages across different industries tend to have higher wages overall.”
Along with this slight increase in the minimum wage, Walsh believes this government “hate[s] working people,” such as by repealing Fair Pay Agreements, getting rid of the ‘dual mandate’ for the Reserve Bank of New Zealand, and van Velden’s reforms to health and safety for small businesses.
“I think it's really clear to me that this government in particular, I'm just going to say it, they hate workers.”
“It's just really egregious, actually. I think it's the minister, you know, and others in the government who say that they care about working people, but their track record shows that's simply not true.”
Walsh calls for those unhappy with this increase to visit their website and social media and get involved with their campaigns.
