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Bosses to keep pay packets despite Govt assistance

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Wed, 04 Nov 2009 7:08p.m.

It was originally intended that bosses whose companies moved to a Government subsidised nine-day fortnight would have had to take pay cuts as well, it was reported tonight.

TVNZ news said the planned forced pay cut was dropped due to lobbying from business.

The scheme lets private sector businesses, workers and unions negotiate voluntary agreements to reduce their hours of work to a nine-day fortnight.

The Government pays employers $12.50 an hour per worker - the adult minimum wage - for up to five hours a fortnight.

Management of at least one firm that took up the scheme took pay cuts but Social Development Minister Paula Bennett told TVNZ it would have been too complex to make it mandatory.

The Government expanded its nine-day fortnight job support scheme to include businesses with 50-100 workers in April.

When the scheme was introduced after February's jobs summit it applied to businesses with more than 100 workers, and it has had limited success.

It had been estimated that expanding the scheme would open it to another 2000 firms and about 140,000 workers.

If about 6000 workers from medium-sized businesses took part, it would cost around $4.5 million.

TVNZ said 48 companies had applied for the subsidy, with 43 being approved.

It was estimated this covered about 3500 workers and saved or delayed the axing of 550 jobs.

NZPA
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Comments

05 Nov 2009 01:11p.m.

Dan wrote:

Why does this not surprise me. Have been writing in all along that National is in cahoots with Big Business since ages. They are all for privatization and user-pay all services as their fingers are dipped in all pies to make more dough. The citizens of New Zealand are foolish to have trusted them and anticipated that they would do anything for the common folks. Dream on and keep losing your state funded benefits and assistances. There will come a day when we will be in as bad a situation as U.S. is as of today.

05 Nov 2009 09:52a.m.

Ty Williams wrote:

David, I'm shocked..... LOL

04 Nov 2009 11:01p.m.

Robin wrote:

Stats show we have a shocking crime rate, and people are asking why is that?

When Ms Bennett and her National Govt are only prepared to pay middle-income workers a $2.00 pay incentive, yet they are more than content with the $10,000 raise corporate topdogs give to themselves.

Wake up NZ, we are being done by the CEO's of our country.

04 Nov 2009 09:11p.m.

David wrote:

I guess it works like this Ty, business contribute to the National Party so they get free favours while the rest of the country slogs their guts out to make ends meet.

The head off to Paula, say hey paula remember that luncheon where we gave you 100,000?

She says sure, hey yeah thanks for that.. dont worry about taking a pay cut, wouldnt want you earning less than $150,000.. its sweet, we'll slash benefits and raise acc levies, hey I know, we can get rid of all disability services while we are at it.

Politicians and their free benefits for friends and girlfriends is starting to smell a little rank.

04 Nov 2009 08:01p.m.

Ty Williams wrote:

Whats too complex about it Paula??? Workers take pay cut Boss takes Pay cut... Um... Seems simple enough to me.