The government has come to its senses and put a hold on the minimum wage rise that was supposed to come into effect today.
Employers, business groups and economists have argued that imposing a pay increase on businesses in the current environment would endanger businesses and risk jobs for the people the policy was aiming to help.
“We realised that a steep increase would have been imprudent at the best of times and foolish in the extreme when so many businesses are unable to function and so many people are facing redundancy,” spokesperson for the Ministry of Policy Reversals Ms Fairly Frugal said.
“When the government is asking everyone to unite for health’s sake we realised we had to stand together with employers and wait until the economy picks up before forcing a wage increase on them.
”It was a difficult decision but difficult times require governments to accept that political philosophy has to take a backseat to prudence and common sense.”
Business groups greeted the announcement with muted enthusiasm.
”It’s good to have our concerns acknowledged, but we’re not very happy that the hold on the increase will only be until noon,” BusynessNZ spokesperson Ms Penny Wise said.