Four weeks holiday
National has announced that it will not repeal the extra week’s leave (which would be electorally suicidal) but will give people the choice of taking it, or cashing it in.
I like this compromise.
The reality for businesses is that wage rates were going to adjust anyway to take account of the extra week. Sure those in current jobs would not take a pay cut, but it would affect future payrises and job offers.
Giving people the choice of taking the 4th week or cashing it up recognises this.
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December 9th, 2004 at 10:49 am
I know that labour market economics indicates that this should, all other things being equal, lead to wages being a little lower than they would otherwise be – but other things are never equal, are they? I am quite skeptical about the claimed costs of the increase. Far more productive economies than ours have far longer leave provisions.
I just hope that people aren’t forced into giving up the leave for the cash. More leave = higher productivity when at work = helps us climb the OECD ladder again.
December 9th, 2004 at 10:59 am
The employee has to initiate the swap, so no danger of being forced.
More leave can be higher producivity when at work, but it can be very damaging to the business.
If you are in a business that charges oiut people’s hours, then having someone away for a week is a very real loss of income.
December 9th, 2004 at 1:08 pm
Once again Jordan, you prove that you never run a successful business. If you have 5 employees doing similar jobs effectively your business is will have to employ another fulltime employee to cover the stats, regulation hols and sickleave, in order to stand still. This alone adds to the redtape element(extra payrole etc. If the new employee is a not upto scratch, then the employer is lumped with the fool unitl they leave, as the other anti business ERA-II provisions mean you can’t bin them, even if they are disruptive, or downright lazy.
Some businesses will be forced to the wall, and their employees will lose all their income because of this move. It is anti business, and is yet another move by the govt to punish the wealth creators in NZ.
December 9th, 2004 at 1:40 pm
Cashing it or taking it costs employers money. Do not see this as a compromise at all, but it does underscore National’s desire to give people choice, something the Labour Party does only on sexual matters in the bedroom.
December 9th, 2004 at 3:53 pm
Prediction: the cashing-in option will never see the light of day. It is a face-saving sop by National just to put at least some semblance of a National tag on it – for now – to be long since forgotten when the time comes. LbW.
December 9th, 2004 at 5:05 pm
It seems National had no choice in this matter. Whatever lollies the goverment hands out has to be matched especially when National is in such a desperate position. In my view the only trading advantage we have is low comparative wage levels especially in trade with Aussie…Other formerly rich nations such as France and Germany seem to be struggling due to high wage costs, short work weeks and lengthy holiday entitlements
December 10th, 2004 at 8:51 am
Um, according to the OECD we work longer hours than the average European. When I was working in the UK 4 weeks was pretty well the minimum, often 5-6 weeks holiday was normal.
Upon returning to NZ I was rather appalled at the prospect of 3 weeks holiday a year.
Bugger that! Who wants to spend their working life having only 3 weeks holiday a year? I need at least 3-4 months every 2 years.
December 10th, 2004 at 9:44 am
I’d love to hear opponents explain to me how 4 wee kleave spells the end ofr New Zealand business. Australia seems to manage quite nicely. In fact, Australia generally seems to do better economically, despite having a generally more worker friendly environment that New Zealand.
December 11th, 2004 at 10:37 am
The worse thing is that in NZ you actually have to work at work. Jeez, at least the Europeans realise that if you are gonna spend 1/3 of your life at work it should at least be fun.
Here it’s just head down crack on – urrrrgghhh.
December 12th, 2004 at 9:49 am
Rodger, Australia also has other policies such as work for the dole. And compulsary superannuation into individual accounts. These might contribute to the higher growth rate. Should we introduce those too?