KEY POINTS:
Air New Zealand workers will be eligible for a surprise boost in KiwiSaver contributions.
The airline yesterday announced it would immediately move to a 4 per cent employer contribution to the scheme, well ahead of the 2011 deadline required by the Government. Other employers could follow suit.
But the Engineering, Printing and Manufacturing Union warned the offer might not be as generous as it appeared. More than half of Air NZ's 10,500 workers were in existing superannuation schemes, with the company offering a contribution up to 7.5 per cent.
Union national secretary Andrew Little said if the initiative stopped employees joining existing schemes, it could ultimately save Air NZ money. "For existing employees on existing schemes, it is not at all generous."
Mr Little questioned if it was a move to win confidence from the Government, as the major shareholder.
Air NZ group general manager (people) Vanessa Stoddart said there was no political motivation and the move aimed to encourage the 45 per cent of staff not in the corporate schemes and to show that the company valued its workers.
Association of Superannuation Funds executive director Bruce Kerr said there were tax benefits for some companies in increasing contributions.
Mr Kerr said many corporate superannuation schemes were under scrutiny in light of KiwiSaver.
He said for those scrapping schemes with company contributions to move to KiwiSaver, the 4 per cent employer contribution would be "the norm".
