ACT wants to freeze the minimum wage, create training wage set at 60% for youth workers, arguing 'higher wages require businesses that can grow'

ACT wants to freeze the minimum wage for three years, create a training wage set at 60% of the adult minimum wage for all workers under 20, shorten time limits for personal grievances and end the compulsory employer collection of union membership fees.

ACT small business spokesperson Laura McClure said the party was “committed to going further to cut costs placed upon businesses, and make it easier to comply with our regulatory settings.”

"Laws designed to improve pay and conditions haven't done the job. Truly higher wages require businesses that can grow,” she said. “ACT's policies will grow productivity so people can genuinely take home more at the end of the week.”

• ACT's promise included a three year freeze on minimum wage increases, saying it had “outpaced productivity.”
• Set the training wage - which would be for workers under 20 for the first year of working for an employer - at 60% of the minimum wage. 
• Allow protected employment exit negotiations “without triggering a personal grievance simply by starting the conversation.” 
• Decrease the time limit for personal grievances, with a requirement for personal grievance proceedings to be lodged within three months of it being raised.
• End compulsory employer collection of union membership fees. 
• Recognise modern digital investment as depreciable property the same as physical investment.

The current minimum wage is $23.95 an hour, with the starting out and training minimum wages at $19.16 an hour. 

The starting out minimum age is for certain young employees under 20, and the training wage applies to worker over 20, usually for the likes of apprentices, both set at 80% of the minimum wage. 

The latest Statistics NZ labour market figures show the underutilisation rate for 15 to 24-year-olds rose to 37% from 34% in the 12 months to June, with the number of underutilised people in this age group rising 21,600 annually to 180,200. The largest increase in underutilisation for this group came from unemployment, up 12,200. The underutilisation rate measures the untapped capacity in the labour market.