Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Good faith bargaining and KiwiSaver

12 April 2008 Media Statement

Good faith bargaining and KiwiSaver

Labour Minister Trevor Mallard said today that he was very unhappy with reports that some employers are attempting to pay those in KiwiSaver less than the people working alongside them who are not in the scheme. This is supposedly based on the costs of their employer KiwiSaver contributions despite government tax credits designed to compensate for this.

"The vast majority of good employers have embraced the KiwiSaver scheme and, in some cases, provided enhanced entitlements to their employees," Trevor Mallard said.

"A company like Progressive Enterprises has looked at the scheme, and thought about how they can best ensure that their employees can access it, adopting a ‘2 + 2’ transitional arrangement to enable employees to start making a 2 per cent contribution in the first year, with Progressives topping it up to 4 per cent. I encourage all employers to have a look at what they can do also. This is an excellent example of how to do the right thing by your workers.

"But in a few cases it appears employers are in essence offering their employees, who have joined KiwiSaver, pay increases 1 per cent less than those employees who decide not to join KiwiSaver, allegedly in order to cover the employer contribution.

"This blatantly ignores the fact that the government provides tax breaks to employers that for the vast majority of employees would already cover the cost of the 1 per cent employer contribution.

"Employers are getting a tax credit of $20 a week which will full compensate for the 1 percent employer contribution for employees who are on a salary of up to $104,000 per annum. Therefore any suggestion that employees also have to cover this employer contribution through their remuneration is unethical.

"The government considered this issue very carefully at the time KiwiSaver was being developed and we decided that the fairest approach would be to leave the issue to normal good faith bargaining between employers, unions and employees under the Employment Relations Act.

"However, if employers continue the immoral practice of pocketing government money at their employees’ expense we will have to reconsider whether special rules will need to be put in place to ensure that an employee is not disadvantaged.

"I have also asked the Department of Labour to look into whether these sorts of actions could amount to a breach of good faith under the Employment Relations Act, which carry fines of up to $10,000," Trevor Mallard said.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election