Wayne Mapp MP National Party Industrial Relations Spokesman

27 August 2004

Air NZ wage blow-out warning tip of the iceberg

National Party Industrial Relations spokesman Wayne Mapp says predictions that Air New Zealand could face up to a $40 million wage blow-out because of the Holidays Act should be of concern to all workers.

That is a whopping 5% wage increase for the taxpayer-owned airline.

Air New Zealand spoke volumes when it used five words to describe the effect of the extra costs, when it said there had been ‘no corresponding gain in productivity.

There have been suggestions that other companies may be forced to issue profit warnings because of the effect the Holidays Act will have on their bottom lines.

The Warehouse said as much when it commented that the Act has ˜certainly increased the cost of doing business" although the full impact is yet to be felt.

The Act simply doesn't work in the modern 24/7 business environment.

The consequences of Labour's union back-scratching will mean fewer employers will take a risk on staff who find it most difficult to find regular work.

This week the National Party revealed official projections that show New Zealand's productivity growth is forecast to remain below that of Australia. That means the gaps between our two countries will continue to widen.

At a time when the Government is running record surpluses, and Australia has gained better access to the US with a free trade deal, the New Zealand Government should be moving to secure our economic future by easing the tax burden on companies - large and small,” says Dr Mapp.

ENDS

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