Inside of the Literature Review, the writer will emphasize on the idea of a minimum wage that affects the current increase in New Zealand. The main point of this Literature Review is to give an idea of the impacts of the positive and negative of the New Zealand wage rise. It also states some arguments that are between many companies whether a high wages is better or low wages. It reflects on many stakeholders that are involved in the issue which helps us understand the minimum wage better. The question now is what is minimum wage? It is defined as lowest hourly depending on everyday work basis or monthly wage that is legally give to employees. Many employees work really hard to earn this pay because they either don’t have a proper degree or may have many other personal reasons. There is always an argument whether the minimum wage is effective for people to have a good living or not. Some say it helps them have a normal life and reduces poverty. Others believe that if the minimum wage is good then it would increase the rate of unemployment especially for people who have no degree and some who are disabled to work. Obviously it would be biases because there are some who are skilled and some who are not. History
The minimum wage started in 1894 in New Zealand (Timmins, 2006). In many countries there is a legislation passed regarding minimum wage by 90% of the government. In many countries the rates are different such as in the U.S people are paid 25$ per hour under the Federal Law. The minimum wage is brought so that simple needs of the workers or employees are met (Labour Office, 2006). It just means that the lowest rate at which employees sell their labour. The reason that the minimum wage was set, because the government wanted to control the sweat shops in manufacturing industries. Most of the employees that worked there were women and young teenagers. They set the rate by how much work they did. Many employees were dissatisfied because they thought their owners were being very unfair due to the amount of work they did, the women and teenagers though they deserved way more than they got. After a while, time changed because now minimum wage is considered as helping families that need special care regarding financial status. The minimum wage shows an ability of markets that provide income and equal rights among the members at a certain work place. There is always a good side and a bad side but it seems that minimum wage doesn’t help change reducing poverty. According to many authors and researchers, the people that hold up the minimum wage have a rise in their per capita income. In New Zealand, minimum wage was increased from the first April 2010 for an employee that whose original wage was $12.50 per hour and it increased to $12.75per hour. Innovation to the Minimum Wage
In New Zealand the people that get employed get a good working atmosphere for private sectors and government. Recently the Minister Kate Wilkinson of labour declared a little rise in New Zealand’s employees minimum wage (“Mallard puts up minimum wage bill,” 2010). In New Zealand the minimum wage was increased from 1st April 2010 for a 16 year old by $12.75 per hour by not including the tax rate which is $102. The hours that the 16 year old worked for is eight hour per day, which is forty hour per week including the wage rise in training to $10. 20. The only reason that the training wage applies is for the people that need credit that consists no less than 60 credits a year (“Minimum wage Rate as of 1 April 2010,” 2010). During the 1994, the youth minimum was introduced for 16- 19 year old. So for it to have an increase definitely brings out a good impact on the changes of Minimum wage. Kate Wilkinson state that “The government is persistent on the need to find a balance between ensuring a fair wage and protecting jobs (“Minimum Wage Increased to $12.75,” 2010). It basically means that the government needs to show a fair balance by...
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