Key relaxed about low nine-day response

John Key. Photo / Dean Purcell

Only one or two employers are currently considering taking up the offer of a partly subsidised nine-day working fortnight, Prime Minister John Key said yesterday.

Speaking on TVNZ's Q&A, Mr Key said he was not surprised that some who might consider the Job Support Scheme were holding off for now.

The scheme will allow employers to offer staff the option of working nine days a fortnight instead of being made redundant. They will receive a $62.50 subsidy from the Government to help toward the 10th day's pay.

Aoraki Polytechnic, Eastern Institute of Technology, Otago Polytechnic, the Open Polytechnic and Wellington Institute of Technology also announced yesterday they would offer free or low-cost training to those affected.

It will not be compulsory to take up training.

Mr Key told Q&A he had been informed only one or two companies were looking very closely at the scheme.

"The important point here is we always argued it would be a last resort, now it's running for an 18-month period ... so I wouldn't be surprised if you see companies who at the moment say, 'look I'd like to hold on for as long as I can'."

The scheme can only be used for a six-month period within the next year-and-a-half and companies were not sure how long the recession would last, Mr Key said.

He welcomed the polytechs' offer of free or cheap training, saying making it compulsory would have been too difficult, but he encouraged employees to lift their skills.

Institutes of Technology and Polytechnics (ITPs) New Zealand executive director Dave Guerin said the institutions were happy to be able to sweeten the deal for employers and employees considering the nine-day fortnight.

Mr Guerin asked ITP NZ members for proposals on March 12 and had five responses within 24 hours. More ITPs were expected to join in.

"ITPs will offer courses within existing funding, using programmes that have already been developed and approved," he said.

- NZPA