National is calling on the Government to postpone the upcoming minimum wage increase.
However, FIRST Union general secretary Dennis Maga called delaying the rise "a terrible idea that punishes the worst off in society while exacerbating the problem it pretends to solve".
The minimum wage is set to go up to $18.90 an hour on April 1. It is currently $17.70 an hour, which would mean an extra $48 a week for Kiwis working full-time, he says.
"With many industries already feeling the pain of the coronavirus outbreak, this additional cost will hit them hard," National leader Simon Bridges said.
"Everyone wants to see higher incomes, but governments need to be responsive to the realities on the ground. Many businesses are struggling to keep employing workers right now, which should be the priority."
It’ll go up to $18.90 per hour, meaning a raise for around 250,000 workers. (Source: Other)
Mr Maga said many low-wage workers are on the frontline and "will be most affected by a pandemic, if it happens".
"All this would do is put pressure on people like retail workers to work longer hours even when they’re sick, risking further transmissions and adverse public health consequences.
"It’s a one-sided proposal that would finance employers and offer nothing for workers when a minimum wage increase is one of the only kinds of relief available to them," Mr Maga said.
Economist Shamubeel Eaqub told Stuff the rise should be delayed.
"It will add a significant increase to wage costs for hospitality businesses that will be reeling from the tourism fallout and potential recession."
Yesterday, ACT called for this year's minimum wage rise to be scrapped.
The Opposition leader said the $1.20 increase was going to hit small and medium businesses. (Source: Other)
"The Government has made it easier for workers affected by coronavirus to access benefits. It must now make it easier for businesses to create jobs and keep workers employed by delaying this year’s minimum wage increase," leader David Seymour said.
Yesterday, the Prime Minister said they were not considering scrapping the minimum wage rise.
"What we need people to keep doing is continue to spend and consume," Jacinda Ardern said. "The adjustments to benefits, and what people are anticipating in their wages are all part of what will continue to keep the economy ticking over."
Mr Robertson said many businesses have been "preparing for some time" for the rise.
An extra $48 a week will be added to Chevy-Lee' Morrison's pay packet, but the E tū union says it's not enough. (Source: Other)
"We know people on the minimum wage tend to spend the money they get when it's increased. It's important to us we continue to support people on low and middle incomes. The idea we would stop is that kind of broad brush approach that's not actually appropriate in the current situation we're in."
He said when the Budget responsibility rules were set up, if there was a major economic shock there would be room for variation.
"We're working through what the consequences of this is but we can all see that this is a global issue."
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