Prime Minister John Key has announced new policies that would incentivise employers to take on young, inexperienced workers by allowing a low minimum wage and reducing the strength of the unions, reports nzherald.co.nz

This came the same day as calls from the Confederation of British Industry, supported by Albert Ellis, chief executive of outsourcing consultancy Harvey Nash to promote the recruitment of young people in the UK through tax breaks and a lower minimum wage (Recruiter.co.uk 31 October).

Under the proposals a ‘new entrants wage’ of 80% of the regular minimum wage - currently NZ$13 (£6.55) - could be paid to those starting out in the job market.

Key also rejected plans by the opposition Labour Party which include a $15 minimum wage, a capital gains tax and emissions trading scheme, telling nzherald.co.nz: “All of these will cost New Zealand productivity and jobs.”

According to nzherald.co.nz, employers would also be able to opt out of collective bargaining agreements with employees, and dock the pay of those who undertake certain forms of strike action.