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

Featured

Fonterra & Silver Fern Farms Launch Beef-on-Dairy Programme

As dairy farmers lock in plans for the upcoming mating season, a partnership between Fonterra and Silver Fern Farms has been formed with the aim of making it simpler to create additional value from calves not entering the replacement herd.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Common sense

OPINION: City and regional councils have been put on notice - stop using extreme climate forecasting scenarios that can drive…

Going Green

OPINION: The Green Party’s rivers and oceans policy may have a new name but nothing else has changed.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter