Wednesday, 27 February 2019 13:27

Magical thinking

Written by 

While we're on the topic of a higher minimum wage, Horticulture NZ chief Mike Chapman is a clear thinker on this, cutting through the bulldust coming out of Wellington.

Obviously, the horticulture industry, like dairying, is hard-hit by labour shortages, so if Chapman believed a higher minimum wage would help address the shortage he’d be in favour.

However, Chapman says the Government line that lifting the base wage is going to create a high wage economy is faulty thinking. 

“It’s pure economic fallacy that driving up wages will magically transform NZ; that it will get rid of low paid and what they see as ‘unskilled jobs’, so creating a highly paid work force that does not have to do what [the Government] considers to be unskilled work”.

The theory goes that higher wages leads to increased labour productivity therefore the employer recoups the higher wage cost.

 

More like this

More water storage needed — HortNZ

The lesson out of the drought this year is that water storage is critical for the prosperity of New Zealand pastoral farms or fruit and vegetable businesses, says Horticulture NZ chief executive Mike Chapman.

New chair for booming hort sector

Horticulture presents a major opportunity for this country, says Barry O’Neil, new chairman of Horticulture New Zealand (HortNZ).

O’Neil to head HortNZ

The Horticulture New Zealand board has elected Barry O’Neil as its new president and chairman.

 
 

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Budget blues

Now that the circus surrounding the Budget’s release has subsided, Milking It makes the following observations about some of its…

» Connect with Dairy News