Air NZ Announces Retirement Savings Initiative

Media Release
24 May 2007

Air New Zealand Announces Retirement Savings Initiative

Air New Zealand today announced to staff a significant initiative to assist with their retirement savings.

Group General Manager People Vanessa Stoddart says the airline will be matching employee contributions to the new KiwiSaver scheme from the time they join.

Under KiwiSaver employer contributions do not have to reach four percent until April 1, 2011.

Ms Stoddart says Air New Zealand’s decision to immediately move to four percent employer contributions is a reflection of the importance the airline places on helping its staff save for retirement.

“Our people are Air New Zealand’s greatest asset and we aim to ensure that we do everything we can while they are with us to lay the foundation for a comfortable future in retirement.”

Ms Stoddart says today’s announcement will mean that many Air New Zealand staff not currently in a superannuation scheme will see their earnings increase on an annualised basis, if they join KiwiSaver.

“Given most annual wage rises are in the three-to-four percent range, the addition of the KiwiSaver contribution would see the earnings of many Air New Zealanders increase substantially.”

Ms Stoddart says Air New Zealand welcomes the fact that some in the union movement have already recognised that there would be a trade-off between the headline wage claim and KiwiSaver in forthcoming industrial negotiations.

“For example, EPMU National Secretary Andrew Little has already stated – ‘Where an employer agrees to make contributions to KiwiSaver, we see that contribution as part of the 5% claim…’.”

Ms Stoddart says today’s KiwiSaver announcement will be one of several over the next year aimed at the development and support of Air New Zealand’s staff.
“The process of rejuvenating Air New Zealand has necessitated some tough decisions over the past few years. As a result, most Air New Zealanders have been confronted with change or uncertainty as we have worked hard to get the airline back on its feet and into a position where it can be internationally competitive again,” she says.

“With the airline now growing strongly in all markets, and notwithstanding our commitment to continue to improve productivity and reduce the cost of air travel for Air New Zealand passengers, we are committed to investing in the future of our people and working with them to help them realise their full career potential and to assist them with developing their future financial security.”

ENDS

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