The latest figures show the number of unemployed people in New Zealand has risen by over a third in a year, from 75,000 to 105,000.
Pressure to keep unemployment low has resulted in the government releasing money to employers to move workers to a nine-day fortnight. The tenth day was initially proposed to be used for training although, for some, it will effectively be free time. Employers with more than 100 workers are paid $12.50 an hour (the adult minimum wage) per worker, for up to five hours a fortnight.
One of New Zealand’s major high-street banks has now announced a pay-freeze for employees earning more than $50,000 pa. Measures announced by ASB today are:
- Pay Freeze for Staff earning over $50,000 per annum
- Executive Salary and Bonus Cuts
- Reduced Work Hour Option for ASB Staff
- Redundancy Still a Last Resort
The Bank’s CEO, Mr Charles Pink said, “Our challenge in these difficult times is to take responsible actions to maintain ASB’s strong, sound financial position, for the benefit of our customers, colleagues and the communities in which we operate. These cost reductions are aimed at protecting jobs at ASB in the face of pressures on revenue driven by the global recession.”
“We recognise that a pay freeze for staff earning over $50,000 is a significant step and, in that spirit, I and my executive team volunteered to lead by example and take a reduction in our own salaries. This reduction will take effect on 1 July.”
“ASB also confirmed last week that we would not be moving any of our New Zealand banking operations or roles offshore. This affirmation has been viewed extremely positively by our people, especially those working in call centres and information technology areas where other banks are outsourcing jobs.”