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

Food security crucial

Hort NZ chair Barry O'Neil says food supply and security is fundamental to New Zealand's future.

Featured

Vaccinate against new lepto strain

A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.

TV series to combat food waste

Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.

National

Frontline biosecurity 'untouchable'

Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut…

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

» Latest Print Issues Online

Milking It

Plant-based bubble bursts

OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter