Media release

30 May 2008

Five weeks’ holidays for public servants will have damaging impact on business

The Government’s decision to give large numbers of public servants five weeks’ leave will harm the private sector, says Business NZ.

Chief Executive Phil O’Reilly says there’s no way that most small businesses will be able to match that, and it will make it even harder to attract staff.

“Our very tight employment market just got tighter,” Mr O’Reilly said.

“Those businesses that will be forced to match this extra week’s leave have just had their payroll costs blown even further.

“Coming on top of the Government’s decision to award everybody the fourth week of holiday pay, this is will have a damaging impact on New Zealand businesses.

“New Zealand companies have to compete against the world, but that competition just got more difficult because of the Government’s gift to the public sector.

“There has been no consultation with business over this move, yet business stands to lose most from it.

“It appears to have more to do with election year politics than concern for working people.”

ends
 

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