Meat industry counts cost

A total payroll increase of about 4.43 per cent - or an extra $27 million - is what the meat industry estimates the Holiday Act will cost it in its present form.

In a submission on amendments to the act, which addresses issues such as the double payment of penal rates, the Meat Industry Association supports the general changes but says more refinement is needed.

Chief executive Caryll Shailer said one of the key issues for the industry was relevant daily pay.

Rather than just paying sick pay based on an employee's basic wage, employers were required to estimate the amount the employee would have earned on that specific day, including overtime or penal rates.

Association member companies account for 21 per cent of New Zealand's exports by value - about $5 billion annually.

Business New Zealand is also highlighting concerns about relevant daily pay.

Spokeswoman Kathryn Asare said as well as the extra costs, it created a perverse incentive.

"It means an employer can't pay an employee more for working than for not working," she said. The act still left employees with an incentive to take sickies on the days when they would earn the most money.

- LIAM DANN