Business NZ Should Not Scaremonger Over KiwiSaver

Business NZ is scaremongering with an immature reaction to a very reasonable union movement strategy that seeks employer contribution to retirement savings.

In Australia employers are compelled to contribute 9 per cent to superannuation. At this stage New Zealand unions are seeking a 2 per cent contribution by agreement.

“This is a normal part of the collective bargaining process, which is promoted by law”, says CTU President Ross Wilson. “Why shouldn’t an employer contribution be a negotiable item in collective bargaining?”

It is in the national interest to encourage savings and also has the potential to take some pressure off monetary policy.

The CTU was successful in getting the legislation in KiwiSaver amended so that the 4 per cent minimum contribution could include an employer component, and also supported tax changes to incentivise contributions.