Wednesday, 27 February 2019 13:27

Magical thinking

Written by 

While we're on the topic of a higher minimum wage, Horticulture NZ chief Mike Chapman is a clear thinker on this, cutting through the bulldust coming out of Wellington.

Obviously, the horticulture industry, like dairying, is hard-hit by labour shortages, so if Chapman believed a higher minimum wage would help address the shortage he’d be in favour.

However, Chapman says the Government line that lifting the base wage is going to create a high wage economy is faulty thinking. 

“It’s pure economic fallacy that driving up wages will magically transform NZ; that it will get rid of low paid and what they see as ‘unskilled jobs’, so creating a highly paid work force that does not have to do what [the Government] considers to be unskilled work”.

The theory goes that higher wages leads to increased labour productivity therefore the employer recoups the higher wage cost.

More like this

Horticulture hit badly in Nelson/Tasman

HortNZ's CEO, Kate Scott says they are starting to see the substantial cumulative effects on their members of the two disastrous flood events in the Nelson Tasman region.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter