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Wednesday, October 10, 2012

Eroding the minimum wage

The government follows through on another one of their promises to fray the edges of the minimum wage. The point of the 90 day fire-at-will rule and this new back door youth rate is not nearly so much the officially advertised doing of a favour to otherwise unemployable youth, but it is the doing of a favour to unscrupulous and particularly mean, tight-arsed employers.  This law is designed to assist bad employers - in other words - not the responsible ones: the good guys have no need to underpay in this way.
Tory blogmaster, Farrar:
All it means is that they can be offered a job at a 20% lower rate than the adult minimum wage, for their first six months. The trade off is that it will mean more of them get jobs, but some of them will get paid less (for six months) than what it would have been.
What trade off? The only employers where this new rule would tip the balance in employing an extra person who would otherwise have not been hired are going to be very, very few.  n=100 max is my guess - and most if not all will be big firms.   The likelihood though of the new youth rate-by-stealth rule providing perverse incentives and legalising rip offs and encouraging summary sackings is very, very high.
Minister Wilkinson:
"The new starting-out wage will create demand for young people by giving employers a real incentive to take them on," Ms Wilkinson says.

Creating a demand for one type of worker however also creates a lack of demand and disincentive for other types of workers - that's acceptable to the Minister because the ones who gain from this exercise in opportunistic discrimination are National's good chums in business. All the small firms who use this to lower their wages for new, young employees (and who don't hire anyone they wouldn't have before) are just gouging.  It's a law made by pricks for the benefit of pricks:
What it actually does is redistribute wealth, from the young and poor to the old and rich.

And how much will it really mean to all the workers being underpaid so that a very few extra people can join the line if that creates vulnerability and undermines everyone's rights? What sort of a trade off is that?
What do you say to a Farrar's Bargain?
 No deal.



At 10/10/12 6:02 pm, Blogger countryboy said...

William Boroughs' words of advice to young people ;
' Never do business with a religious son-of-a-bitch . But if you do , get it in writing . Never trust anyone with God on their side to tell them how to fuck you on the deal . '

( Big Boss of Serco reckons he's successful because he listens to God . I see . )

Countryboy's words of advice to young people ; ' Run ! Run now ! Run like the wind ! Go to Australia , England , Europe if they'll have you . Sell your useless car . Borrow money from your folks , aunty , granny . Go before you get a criminal conviction . Go before you fall in love . Go before you get into debt . Go before you have children . Go ! Go ! Go ! Go and be happy in some country where they know the meaning of grace , style , class , finesse . GO ! Get out of this greedy , hate filled little paddock . Two damp , mossy stones floating on a cold , dark ocean . Of tears actually . Since all who sailed here did so for the want of a choice of a better choice . It's a dark inditement on my ancestors who must have sailed right over the equator . Past all those beautiful Islands , past those beautiful women , past those gentle-men only to land here . On a wind swept swamp to struggle and die , cloaked in some inherited , unfathomable sadness .

Being cruel and just plain fucking nasty to our kids is something we built our culture upon . Pain and subjugation builds good idiots . Servile and sniveling . They'll grow up nice and pliant . Perfect for the propaganda machine . Can't have none of your nurtured free thinkers . They might figure us out . You fucking pricks indeed @ Tim .
Great post and God I love you guys . The wine made me say that . And I agree with it .

At 10/10/12 6:13 pm, Blogger countryboy said...

My apologies ! My useless spell checker failed to pick up on ' indictment ' .

At 11/10/12 8:09 am, Blogger Phil said...

Trying to prove I'm not a robot... its not easy. You are not a Russian spy are you Country boy? roll on the revolution!

At 12/10/12 11:54 am, Blogger countryboy said...

@ Phil . Yes . Yes , I am a Russian spy . I spy on things in a Russian sort of way . Through the bottom of a vodka bottle . It gives me a convenient memory loss when pushed into corners by the GCSB .

At 12/10/12 4:57 pm, Blogger Gosman said...

According to research carried out by a NZ Economist it is likely that abolishing the youth minimum wage led to higher youth unemployment. What a surprise.



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