The Government is required by law to conduct annual reviews of the Minimum Wage rate. In 2020, admist the COVID19 pandemic, the minimum wage increased from $7.60 to $8.00 an hour. Making a decision on minimum wage requires a nation-wide consultation as the outcome will affect everyone in the Cook Islands. In deciding on a minimum wage, there needs to be a balance between needs of workers and the ability of all sectors to afford any increase.
Submissions on the Minimum Wage are now invited from the public. All points raised will be reviewed by the Minimum Wage Review Panel and taken into account when compiling its report to the Minister. Below are issues identified for consideration in the review. Your views are important. Please add other points that you think are important for the review.
COVID19 Considerations:
1. Currently the Cook Islands government is funding the economic response plan (ERP) largely through debt funding. This means Cook Islands have taken on significant debt which will need to be paid back with interest. The economy is in a critical situation compared to pre COVID.
2. The Government has chosen a continuation of the wage subsidy (longer than virtually any other country in the pacific including NZ and Australia) as well as other funding for the Economic Response Plan (eg business grants etc) as being the most important way of supporting all workers in the current environment.
3. The wage subsidy has not only allowed employers to keep paying their staff, but has prevented a huge downturn in people being able to spend money on necessities. Both employers and employees have benefited massively. The alternative would have been a closure of many businesses and exodus of workers.
4. The government debt has occurred not just through expenditure on ERP but also through a significant reduction in taxation through reduced business profitability and company tax, as well as reductions in VAT and PAYE returns (less spending by tourists and lower salaries/wages for many employers and employees).
5. COVID impacts on the ability for either Government or businesses to pay more than the current minimum wage is simply not sustainable for the foreseeable future (due to debt and debt servicing).
Other General Considerations:
1. Any minimum wage increase must be paid for from somewhere. It can come from diverted government funds, increased prices, reduced company profits and increased company losses.
2. The minimum wage should balance the need to adequately compensate an entry level worker against affordability of government and businesses.
3. Employers need to access labour efficiently and affordably.
4. It is prudent to avoid measures producing excessive inflation and price rises.
5. The current minimum wage ($8.00/hour) in the Cook Islands is significantly higher than in most other countries in the Asia Pacific region but is lower than in New Zealand or Australia (noting that New Zealand and Australia are amongst countries that provide the highest minimum wages in the world and it is unrealistic to base local minimum wages on their precedent).
6. The minimum wage should strike a balance at the economy –wide level between workers and employers.
7. Do you think there is a need for a government set minimum wage or would you rather leave that to the market forces to decide? Why?
Issues for Workers:
1. What do you feel is a realistic minimum wage for an entry level worker?
2. Do you think there is a need for industry specific minimum wage rates?
3. Do you think there is a need for a youth minimum wage rate?
4. Are you currently paid the minimum wage? Do you think the current wage is fair relative to other wages?
5. Is the level of the minimum wage a factor in deciding whether to take up unskilled work locally, rather than leave for work overseas?
6. Is the current minimum wage of $8.00/hour, enough to meet minimum living costs for a single person? for a couple? for a family?
7. Is employment on the minimum wage preferable to subsistence work such as planting or fishing?
8. Would students’ decisions about when to leave school and enter employment be influenced by a higher minimum wage rate?
9. Is the current minimum wage suitable for workers in the Pa Enua? Or should the Pa Enua have a different minimum wage rate?
Issues for Employers:
1. What do employers feel is a realistic minimum wage for an entry level worker?
2. Are employers currently paying a significant number of workers the minimum wage or near the minimum wage (near being within $1)?
3. Would an increase in the minimum rate have a significant impact on their business?
4. If so, would employers need to increase prices? Reduce staff hours? Lay off staff? Absorb costs through reduced profits? Close down?
5. Would a higher minimum wage put pressure on other wage bands for an increase?
6. How does the minimum wage rate influence decisions to employ foreign workers?
7. Would a higher minimum wage have a greater impact on employers in the Pa Enua?
8. How would an increase in the minimum wage affect industries that rely on relatively inexpensive labour (for example: agriculture)? Would commercial operations in these industries be able to afford an increase?
9. Would the increase encourage businesses to be more productive?
Issues for Government:
1. Will an increase in the minimum wage for public servants be affordable?
2. What are the inflationary impacts of a minimum wage increase, and in which sectors?
3. Are there minimum wage considerations particular to the Pa Enua?
4. Does a minimum wage increase conflict with other Government policies in relation to sector growth (for example, in agriculture or fisheries)?
5. Does an increase in the minimum wage channel more money in the economy to low income earners?
6. Does an increase in the minimum wage cause job losses? E.g. Employers may be forced to reduce hours
7. Will an increase have an impact on government worker job sizing bands?
8. There may be budget constraints for overall government payroll, particularly in the Pa Enua. Should Pa Enua minimum-wage public servants be able to work reduced hours at a higher wage rate, maintaining or slightly improving their current income while giving them more time for fishing / planting etc?
Written submissions in Maori and English can be emailed or dropped off at the Ministry of Internal Affairs.
Submissions will remain confidential to the Panel.
Email: [email protected]
Subject: 2021 Minimum Wage Review
Mail: Minimum Wage Review Panel, Ministry of Internal Affairs, PO Box 98, Rarotonga, Cook Islands
Oral submissions: At a public meeting, Thursday 11th February 2021 @ 5pm, at the Sinaii Hall, Avarua.
The closing date for submissions is: 25/02/2021- 10:00 am
AKARA AKAOUANGA I TE MONI MEANGITI-RAVA A TE ARONGA ANGAANGA – 2021
Ka anoanoia te kavamani i raro ake i te ture, kia akarakara i te turanga ote moni angaanga meangiti-rava i te au mataiti ravarai. I te mataiti 2020, na roto i te tuatau o te Covid-19, kua akakakeia te moni meangiti rava mei te $7.60 ki te $8.00. Ko te tuku-anga tika no teia moni meangiti, ka anoanoia tetai uriurianga i rotopu i te au pa enua, no te mea ko teia tuku-anga tika ka arapaki te reira i te katoatoa i roto i te Kuki Airani.
Ko te akanooanga i te moni meangiti-rava kia tau katoa te reira ki te turanga o te au ngai angaanga e te au ravenga kimi puapinga.
Te pati iatu nei te manako o te iti tangata katoatoa no runga i teia tumu manako puapinga. Ka akaraia te reira e tetai pupu-tangata no teia akakoroanga e ka tata katoa ia tetai Ripoti ki te Minita o te Korona e nana teia tuanga. Ko teia i raro nei tetai au manako e tau kia akaraia, no reira te pati ia atu nei to kotou au manako.
Oronga katoa mai i tetai au manako kare i roto i te akapapaanga i raro nei, taau i manako e ka tau kia akara katoaia.
Turanga tei akatupuia été COVID19 :
1. I roto i teia tuatau te tutaki nei te kavamani i tetai moni ki te Akapapa’anga Ravenga Kimi Puapinga no the Kuki Airani -ERP, mei roto mai i tetai tuanga moni akakaiouanga. E akapouanga moni maata teia te ka anoanoia kia tutaki tupauia, atui atu ki te moni tere. E manamanata maata teia no te turanga o te kimi puapingi me akaaiteia i te tuatau i mua ake i te Covid.
2. Kua akanoo te kavamani ia tutaki ia atu rai teia tuanga moni tauturu-wage subsidy, pera katoa tetai uatu au tauturu i roto ite Akapapanga Ravenga Kimi Puapinga no te Kuki Airani-ERP, (akaranga; moni tauturu na te ona kimi puapinga- business grant) e ko teia oki te au ravenga puapinga no te tauturu ite aronga angaanga o teia tau tuatau.
3. Kare katoa teia tuanga moni tauturu-wage subsidy ia akakotinga ia no te tutaki ua ite au aronga angaanga a te au ona kimi puapinga, inara, kua paruru katoa ia te au akapauanga moni a te tangata.
Kua kitea ia te puapinga maata ta teia i akatupu no te au ona kimi puaapinga é te aronga angaanga.
Naringa kare, ko tetai au ravenga ke atu, koia oki kia topiriia te au ona kimi puapinga ma te akanoo i te au aronga angaanga.
4. Kare te akakaiouanga moni i akapouia ki runga i te akapapaanga ravenga kimi puapinga no te kuki airani anake, inara kua riro tei reira ite akaiti katoa mai ite moni tero e te PAYE.
5. No te manamanta ta te COVID i akatupu, te ngata nei te akateretereanga a te kavamani été au ona kimi puapinga no runga ite akakeanga i te moni meangiti rava.
Au manako ka tau kia akaraia e te katoatoa
1. Ko tetai tutaki-anga moni meangiti-rava ka tutaki ia te reira mei tetai ngai ke mai. Penei-ake mei tetai ngai mai i roto i te pute moni a te Kavamani, me kore ka akamaata ia te moni o te au apinga e oki ia nei, penei kia akaiti ia mai te moni puapinga e rauka mai nei i te au tuanga kimi puapinga, me kore ka akamaata ia te pou o te au tuanga kimi puapinga.
2. Ko tetai tutaki-anga moni meangiti-rava, kia tau te reira no te tutakianga i tetai tangata angaanga ou.
3. Ka anoano te au pu-angaanga kia ngoie ua ia ratou i te kimi tangata angaanga te ka ngoie katoa ia ratou i te tutaki.
4. Ko te akakakeanga moni no te moni meangiti-rava te ka riro ei maata atu i te turanga puapinga o te basileia, ka riro te reira i te apai mai i tetai au moni mei tetai au tuanga ke.
5. E mea meitaki kia paruruia te au peu te ka riro i te apai mai i te au akakakeanga moni maata ki runga i te au apinga e okoia nei i roto i te toa ko te ka riro ei ngata ki te oraanga kopapa.
6. Ko te tutakianga moni meangiti-rava i roto i te Kuki Airani i teia ra ($7.25 i te ora), e maata roa atu teia me akaaiteia ki te au enua Asia e te pae moana Pasifika. Inara e meangiti-rava teia me akaaiteia ki to Nuti Reni e Autireria no te mea no raua tetai turanga ‘moni meangiti teitei-rava’ i roto i teia nei ao.
7. Ko te moni meangiti-rava, kia tau te reira ki te tuanga kimi puapinga i rotopu i te au pu ngai angaanga e pera te aronga angaanga.
8. Eaa toou manako i te tutaki moni meangiti-rava; e mea tau ainei i te kavamani kia akatinamou i te reira, me e meitaki ake kia vaoo na te makete e akanoo i te reira? Akamarama mai i toou manako.
Au manako no te aronga angaanga
1. Eaa i to te aronga angaanga manako te tutaki moni meangiti-rava e tau no tetai tangata te ka akamata i te angaanga?
2. I toou manako e mea tau kia akanooia tetai moni meangiti-rava na runga i te au tuanga kimi puapinga, auraka oki kia aiteite ta te katoatoa?
3. I toou manako e ka anoanoia tetai moni meangiti-rava na te mapu?
4. Ko te moni meangiti-rava no te tutaki aronga angaanga, me te riro ainei teia i te opara i te tangata kia rave i tetai uatu angaanga e auraka kia aere ki tetai ua atu enua ke?
5. Ko te moni meangiti-rava no te tutaki aronga angaanga, te rava ainei teia no te aronga takitaki? Me kore te oraanga akaipoipo? Me kore no tetai ngutuare tangata?
6. Ka meitaki ainei te oraanga ngutuare me maata atu i te okotai tangata e koi ana i te moni meangiti-rava e $7.25 i te ora?
7. Me te tau nei e ko te iki i te rave i tetai angaanga moni meangiti-rava, e puapinga atu te reira i te angaanga tanutanu me kore tau-tai?
8. Ka riro ainei te akakakeanga moni tutaki i te akanauru i te tamariki apii kia akaruke i te apii e kia angaanga moni?
9. Te tau ainei te moni meangiti-rava o teia ra no te aronga angaanga i te Pa Enua? Me e tau ake e moni meangiti-rava tuke rai ta ratou?
Au manako no te au pu ngai angaanga
1. Eaa to te au pu o te ngai angaanga manako i te moni tau no te au mapu e te au tangata ou ka akamata i te angaanga?
2. E maata ainei te aronga angaanga ta te au pu o te ngai angaanga e tutaki nei ki te moni meangiti-rava, me kore piri vaitata atu (kare i mamao mei te $1) ki te moni meangiti-rava?
3. Ka riro ainei te akakakeanga i te moni meangiti-rava ei ngata ki taau pitiniti?
4. Me ko te reira te turanga, ka anoano ainei te au pu o te ngai angaanga i te akakake i te moni o te au apinga e okoia nei? Me kore ka tipu mai te ora angaanga? Me kore kia akarukeia tetai au tangata angaanga? Me kore ka tipu ki raro ta ratou moni e rauka mai nei? Me kore ka topiri ia te ngai angaanga?
5. Me akakakeia te moni mengiti-rava, ka riro ainei teia ei manamanata no tetai atu au akanoonooanga moni tutaki i tetai au tangata angaanga?
6. Te akapeea nei te turanga o te moni meangiti-rava no te tukuanga-tika no te apai mai i te au tangata
porena no te angaanga?
7. Ka peea te turanga o te au pu o te ngai angaanga me takiia te moni angaanga ki runga i te Pa Enua?
8. Mei te a’a te turanga o te au tuanga kimi puapinga te kare e anoano ia te au tangata kite pakari no te rave i te au angaanga, me akakakeia te moni angaanga (mei te tuanga tanutanu)? No runga i te tuanga kimi puapinga, me ka rauka i teia au tuanga i te apai i teia akakakeanga moni?
9. Ka riro ainei te akakakeanga moni i te akamaroiroi i te au tuanga kimi puapinga no te akamaata atu i to ratou puapinga?
Au manako no te Kavamani
1. Me ka rauka i te Kavamani i te akakake i te moni meangiti-rava a te aronga angaanga?
2. Mei teaa te tu-kaui o te akakakeanga moni, e eaa te au tuanga ka ngata?
3. Eaa te turanga tau meitaki no te moni meangiti-rava no te Pa Enua?
4. Ko tetai akakakeanga moni, ka riro ainei teia i te kaitamaki ki tetai au akanoonooanga a te Kavamani no tetai au tuanga keke mei te pae tanutanu e te tautai?
5. Ka riro ainei te akakakeanga moni meangiti-rava i te akamaata atu i te moni a te au tangata moni meangiti?
6. Ka riro ainei te akakakeanga moni meangiti-rava i te akanoo i tetai au tangata angaanga? Mei teia oki te tu, penei ka inangaro te au pu angaanga kia akaiti mai i te ora angaanga.
7. Eaa te turanga o te au tuanga moni tutaki no te aronga angaanga i roto i te Kavamani me akakake-ia te moni meangiti-rava?
8. Penei ka ngata te tuanga moni tutaki a te Kavamani i te aronga angaanga, i vao tika’i i te Pa Enua. E mea meitaki ainei i te aronga angaanga Kavamani i runga i te moni meangiti-rava i te Pa Enua kia akaitiia mai to ratou ora angaanga ma te akakakeia ta ratou moni angaanga, kia noo rai me kore kia meitaki atu ta ratou moni angaanga, e oti maata katoa atu to ratou taime ki tetai atu au angaanga keke mei te tanutanu e te tautai?
Tata mai i to kotou au manako ki roto i te reo Maori me kore Papaa ka tuku mai ei ki te Opati o te Internal Affairs i Tupapa. Ko te pupu-tangata ua no teia akakoroanga te ka kite i toou au manako.
Email: [email protected]
Subject: 2021 Minimum Wage Review
Mail: Minimum Wage Review Panel, Tango Akarangatira Oraanga, PO Box 98, Rarotonga, Cook Islands
Ka topiri te tuatau tuku manako tata mai a te Paraparau ra 25 no Peperuare 2021.
Uipaanga akaari manako: Ka raveia a te Paraparau ra 11 th no Peperuare 2021, 5pm ki roto i te Sinai Hall I
Avarua.
