September 3, 2008
Kiwisaver change will keep employers honest – EPMU
The Engineering, Printing and Manufacturing Union welcomes the closure of a Kiwisaver loophole as a move to keep employers honest.
The change stops employers from deducting their contribution for the scheme from their workers’ wages while still pocketing the government tax credit.
EPMU national secretary Andrew Little says the move means workers will get the full and intended benefit of Kiwisaver.
“We have had employers try to take their Kiwisaver contribution off the top of wage claims during negotiations but have always made it very clear that was not an option.
“Other workers have not been so lucky, just recently I’ve seen a pay slip where an apprentice was having four percent deducted from his pay as an ‘employer contribution’.
“The tax credits have provided employers a pretty easy introduction to Kiwisaver, especially considering the contribution rate in Australia is nine percent. All this law does in ensure that the benefit of those credits goes where it’s supposed to.”
The EPMU has campaigned politically and industrially for employer contributions to Kiwisaver since the scheme was first introduced.