KiwiSaver law change an abuse of power

September 3, 2008

KiwiSaver law change an abuse of power

The major KiwiSaver change passed into law today represents an abuse of Parliamentary power, says the Employers and Manufacturers Association Northern (EMA).

"Announcing the details of the change only last night and passing them into law 12 hours later, without public consultation, is an abuse of Parliamentary power," says EMA chief executive, Alasdair Thompson.

"Also, this amendment to the Employments Relations Act represents a major change to employment law.

"It goes far further than Labour Minister Trevor Mallard had indicated.

"Employers will now have to review their pay arrangements to ensure they are not in breach of the law, and exposed to a personal grievance claim from one of their staff.

"The worst aspect is Labour and the minor parties supporting the change require employers to pay people in KiwiSaver 4 per cent more than those not in the scheme.

"This adversely affects people who the Labour Government purports to represent - namely those who can't afford to join KiwiSaver or those over 65 and under 18 who are not eligible for the scheme."

ENDS

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