Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - New Zealand (Ratification: 1938)

The Committee notes the comments made by the New Zealand Council of Trade Unions (NZCTU) concerning the application of the Convention. While acknowledging that significant progress has been made in the period since 1999 in matters related to the minimum wage system, the NZCTU observes in its comments that two areas of concern remain, namely the proposed exemption process for trainees and the level of resources applied to enforcement of minimum wages. Concerning the proposed training minimum wage, the NZCTU considers that there should be trainee scales to be agreed between the appropriate employer and union group and notified the Department of Labour so that trainees are given the opportunity to progress through a scale rather than being stranded on a trainee commencement rate for an extended period. It adds that the minimum wage rates applicable to trainees should reflect what is generally recognized under the current structure of minimum wages, i.e. that those over 18 years of age should receive a higher amount, and notes in this connection that in 2000, only 8 per cent of all industry trainees were aged 15 to 19 years old. As regards enforcement, the NZCTU holds that the promotion material provided by the Department of Labour is not sufficient to ensure effective enforcement and that a higher number of labour inspectors is needed.

The Committee requests the Government to include in its next report any observations it may wish to make on the comments forwarded by the New Zealand Council of Trade Unions. It also asks the Government to keep it informed of all developments concerning the repeal of the training exemption and the implementation of the new training minimum wage and to transmit a copy of the legal instrument adopted to this effect.