Nine-day fortnight scheme to be expanded: PM

The nine-day fortnight job-saving scheme is about to be expanded so smaller companies can take part in it, Prime Minister John Key said today.

At present it is limited to companies with more than 100 employees and unions want it to cover those with fewer workers.

When the Government launched the scheme it said it planned to extend it and Mr Key said at his post-cabinet press conference today he expected to make an announcement later this week.

So far three companies have taken up the nine-day fortnight, with the Government subsidising some of the pay for the 10th day.

The latest, Oamaru-based Summit Wool Spinners, confirmed today it had signed up.

The company said it had reached an agreement with the Ministry of Social Development which saves 57 jobs.

The nine-day fortnight came out of the Government's Job Summit.

Opposition parties have criticised it for having a minimal impact but Mr Key said today more than 100 jobs had been saved and more than 60 companies had made inquiries and were considering their options.

The scheme runs for 18 months and companies can take part in it for six months.

Mr Key said he was sure some companies were "saving it up" to use later if they had to.

The Engineering, Printing and Manufacturing Union (EPMU) and the National Distribution Union (NDU) said today the nine-day fortnight initiative was saving jobs.

"More companies should look at the scheme as an alternative to redundancies," said NDU president Robert Reid.

The Government should look at expanding the scheme so firms with fewer than 100 workers could apply, he said.

EPMU national secretary Andrew Little welcomed the Government's approval of the proposal at Summit Wool Spinners but said there was not enough funding for training of workers when they had time off during the scheme. This was a lost opportunity.

Last month a nine-day fortnight was negotiated at Fisher & Paykel Appliances for its Auckland refrigeration assembly workforce.

Under the agreement at Fisher & Paykel, the 35-hour work week will be supplemented with an additional 3.5 hours pay, made up from the Government's nine-day working fortnight scheme and an equivalent company contribution.

The remaining 1.5 hours per week could be taken as paid leave to ensure continuity of wage levels. As part of the scheme, employees would attend a company-funded in-house training programme to increase their skills for 3.5 hours each fortnight.

Summit Wool Spinners acknowledged the practical help it had received from the Otago Southland Employers' Association in Dunedin in negotiating the agreement and from the EPMU and NDU.

"This agreement will help us weather the difficult times ahead and enable us to make realistic plans to see us through the recession as we currently understand it," said Mr Hammond-Tooke.

Last November shifts at the plant were reduced from 12 hours to 10 hours in response to downturn in orders.

- NZPA