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'Step too far': EMA raises concerns with ACT proposing to freeze minimum wage

Author
Newstalk ZB,
Publish Date
Tue, 15 Sep 2026, 4:48pm
David Seymour announces the Act Party list for the 2026 election at the Royal New Zealand Yacht Squadron in Auckland, New Zealand on September 13th, 2026. New Zealand Herald photo by Sylvie Whinray
David Seymour announces the Act Party list for the 2026 election at the Royal New Zealand Yacht Squadron in Auckland, New Zealand on September 13th, 2026. New Zealand Herald photo by Sylvie Whinray

ACT is promising to freeze the minimum wage for three years and make it more tricky for unions to collect membership fees if it returns to Government. 

The party would also introduce a training wage for under-20s' first year of employment, at 60 percent of the minimum wage. 

It also wants to shorten the personal grievances time-frame, and require they be raised with the Employment Relations Authority within three months.

EMA Head of Advocacy Alan McDonald has raised concerns with aspects of this - and says an 'indexed' approach to the minimum wage would be a better idea. 

"What we've seen in the last two or three minimum wages - they've been quite small steps up, they've been 20 or 50 cents. And that, to me, makes more sense than freezing them completely, because there is inflation."

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