Bittersweet for workers on April Fool’s Day

April 1st will be a bittersweet day for workers says the CTU.

CTU Secretary Peter Conway says that there is good news and bad news: ‘There is good news is the modest increase in the minimum wage, the increase in employer KiwiSaver contributions to 2 percent, rest breaks and rights to breastfeeding breaks for mothers, an independent earner tax rebate for some low-paid workers, inflation adjustment to benefits, and the implementation of a subsidy where reduced working hours are in certain circumstances agreed as an alternative to redundancy.’

‘However, the bad news is that workers on $40,000 or less and already receiving Working for Families will get no tax cut, whereas someone on $100,000 a year will get an extra $1,260.’

‘In addition the changes to KiwiSaver mean that although workers can now opt in at 2% without their employer’s agreement, the removal of the employer tax credit means that employers are looking for offsets against wage increases. According to actuaries the combined effect of capping the employer contribution at 2% and other changes means that someone on $50,000 a year will save $143,263 less by age 65 years than under the scheme in place last year.’

Peter Conway said the outlook for workers is not positive with the Government signalling attacks on ACC, holidays, and public sector jobs. In addition the Government needs to speed up implementation of measures to create jobs, retain jobs and support workers made redundant.