Huge Risks in Scaled Back Canterbury Package
new-zealand-council-of-trade-unions
Mon Mar 28 2011 13:00:00 GMT+1300 (New Zealand Daylight Time)
Huge Risks in Scaled Back Canterbury Package
Monday, 28 March 2011, 5:06 pm
Press Release: Council of Trade Unions
Huge Risks in Scaled Back Canterbury Package
The CTU believes that there are huge risks in the scaled down support for employers and workers impacted by the February earthquake.
If employers cannot receive the full earthquake support subsidy when there is a genuine need for it, then they may not cover full wages for the workers or may instead simply lay workers off. And the Earthquake Job Loss Cover is being scrapped it appears.
Peter Conway, CTU Secretary said “we can understand that the Government has already spent a lot of money on this support, but that is because the need is so great. Although some employers will now be clear on when they can be viable and to what extent, forcing employers into premature decisions will simply mean redundancies”.
Peter Conway said a lot will depend on how exceptions are applied.
Unions asked the Government to extend the existing package for another 6 weeks and only then consider other options.
The CTU requested that:
1. The subsidy packages continue beyond that 5 April 2011 for a further 6 weeks at which time they should again be reviewed.
2. The packages are extended to all affected workplaces and employees in the Christchurch City Council area.
3. The employer can apply also in cases where a workplace is open but where an employee cannot attend work for a genuine earthquake-related reason.
4. All workers made redundant or dismissed as a result of the earthquake are eligible for the employee grant.
5. The partial tax exemption currently in place on redundancy compensation is extended for a further 12 months.
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6. There is special transitional support and advice for workers made redundant or dismissed when there are large groups involved.
7. As a matter of urgency, there is an analysis of future skill requirements for the rebuilding of Christchurch and mechanisms put in place for the retraining and/or up skilling of displaced employees.
Marty Braithwaite, CTU Earthquake Response Coordinator, says, “When much of the recovery process is so slow, reducing this support at such an early stage is a mistake”.
ENDS
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