KiwiSaver addition discriminates

Media release

2 September 2008

KiwiSaver addition discriminates against lower paid

The addition of an amendment to the Employment Breaks & Infant Feeding Bill relating to KiwiSaver that is being rammed through Parliament is opposed by both employers and employees, says EMA Northern Chief Executive Alasdair Thompson.

“It discriminates against all workers who can’t afford to join KiwiSaver or who are barred from joining it due to their age,” Mr Thompson said.

“It discriminates against all workers not in KiwiSaver - this year any new employees will be paid at least 1% less than those employees in KiwiSaver.  Next year they will be paid at least 2% less than those in KiwiSaver.   The year after that they will be paid 3% less, and in 2011 they will be paid 4% less than those in KiwiSaver.

“The people most adversely affected by this are those on the lowest pay rates who can’t afford to join the scheme, or those 65 years and older who are not allowed to join.  The Government, with the support of minor parties, is ramming through this legislation which will most adversely affect the lowest paid, who can’t afford to join - the very people the Labour-led Government purports to support.”

“This amendment is in conflict with employment law that makes discrimination between equally performing employees doing equal jobs in the workplace illegal.

"Paying employees 4% less because they are not in KiwiSaver will create workplace disharmony and is unacceptable."

ends 

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