This Government has signalled that they aren’t on the side of employers. They have announced a doubling of sick leave which will cost employers nearly $1 billion per annum.
As businesses are still reeling from the enforced shut down because of the Chinese plague, this is the last thing that they need.
Doubling New Zealanders’ minimum sick leave entitlements could cost businesses about $950,000 million per annum [???] a year.
The Government will today introduce legislation to increase the statutory minimum allowance from five to 10 days a year and would bring New Zealand into line with Australia.
The bill will go through the full select committee process and will likely come into effect late next year.
Minister for Workplace Relations and Safety Michael Wood revealed today doubling sick leave was expected to cost businesses $950,000 million per annum [???] – equating to 0.9 per cent of the country’s total wage bill.
“Which is a gross cost which doesn’t actually take into account the savings that are made when people don’t come into work with sicknesses and pass them on to others and reduce productivity.
“So I think there’s actually a net-positive here for employers.”
NZ Herald
The morons at NZ Herald think a billion dollars is $950,000 million when that number is actually nearer to 1 trillion than 1 billion. The correct number is $950 million.
Clearly, Michael Wood has never had to directly employ people and pay them from his own pocket. He is quite simply, dreaming.
Unfortunately when the 10 days of sick leave comes in, most staff will simply see it as an extra weeks holiday a year. I’ll bet that currently around 85% of all sick days are Mondays and Fridays. With 10 days sick leave it will be roughly a day off every month.
If it costs employers $950 million per annum then there goes your wage growth and hiring new staff. It could in fact lead to less employment.
The Government just keeps on piling these imposts onto business blithely thinking they will just suck it up. They are in for a rude awakening.
Unemployment is skyrocketing and these fools just keep hurling costs at employers.
