CTU concerned employers are abusing covid-19 fiscal support package

Author
Newstalk ZB,
Publish Date
Wed, 25 Mar 2020, 8:08PM
Some people are reporting thaty businesses aren't passing on their wage subsidies to employees. (Photo / Getty)

CTU concerned employers are abusing covid-19 fiscal support package

Author
Newstalk ZB,
Publish Date
Wed, 25 Mar 2020, 8:08PM

There are concerns that Government’s business support package is being abused employers.

Anecdotal reports to ZB Drive suggest that businesses are pocketing the government's wage subsidy and keeping employees on leave without pay.

The Government has put in place wage subsidies for all businesses who can prove they've taken a financial hit by Covid-19

Richard Wagstaff from the Council of Trade Unions told Heather du Plessis-Allan that there are concerns that a small number of employers are behaving badly.

“They’re meant to be getting 80 per cent of their salary if they get this business support package, but workers aren’t getting that, they are asked to make up the rest themselves.”

Wagstaff says that he has no doubt that some businesses are trying to find ways to cut money, which includes businesses trying to stay open despite not being essential.

He says employers shouldn’t think this is an opportunity to rip employees off.

“Workers are feeling quite vulnerable at this time.”