The New Zealand government proposed over the weekend to extend its Flexi-wage program to help get up to 40,000 additional Kiwis into work.
In response to the ongoing crisis of Covid-19 the wage subsidy’s eligibility criteria could be expanded to boost the number of businesses that can access it, costing an additional $311 million.
“It’s about connecting businesses with people who are looking for work,” the Labour party website said.
“[And] while our strong health response has given us an economic head start, the global pandemic will continue to be a challenge.
“By expanding the Flexi-wage programme, we’re supporting the people likely to be hardest hit by the ongoing economic impact of COVID-19. It’s just one way we’re helping to cushion the blow, get people working and keep New Zealand moving.”
The wage subsidy scheme has supported around 1.7 million workers so far, and will pay up to $22,5000 in wage assistance per worker to businesses.
BusinessNZ chief executive Kirk Hope said it’s good to see business health at the forefront of the country’s economic recovery plan.
“This revamp could offer additional support to struggling businesses and will support those most affected by the current economic uncertainty,” Hope said.
“It may also act as a strong incentive to employ those who are most at risk of unemployment. Ultimately, we need to see political parties deliver on these policies and get behind business.”
New Zealand council of trade union president Richard Wagstaff said the benefit of Flexi-wage is that it can be actioned quickly through the scaling up of the existing model.
“It is great to see Labour’s clear commitment to support getting people into work and supporting those whose jobs might have been on the edge due to Covid-19,” Wagstaff said.
“Everyone benefits when people can get jobs and keep their jobs. It was heartening to hear our Prime Minister speak about how she, and Labour, will do everything possible to ensure that working people and jobs suffer as little as possible as a result of COVID.”
