Election 2008

Recession rescue plans should be combined - unions

18:33 pm on 1 November 2008

Plans revealed by National and Labour to help workers who lose their jobs as a result of the economic downturn should be combined, say union groups.

Labour has pledged a 13-week job search allowance, that would not be means-tested against a partner's income, for those made redundant after five years in the workforce.

National is planning 16-week support for those who lose their jobs in the recession, are eligible for Working for Families or accommodation support and have been in the same job for six months.

Council of Trade Unions president Helen Kelly said combining the best from both proposals would give workers time to adjust to the process of finding a new job.

"Labour's got in their policy the job search allowances which National haven't got. (It is) very important if you lose your job being able to retrain.

"National has got in its policy protection of the Working for Families in-work payment"

National Distribution Union secretary Laila Harre said both National and Labour's proposals contain good ideas, as well as flaws.

She said rather than having one or the other, the two should be combined, as they are similar in size and scope and fill in gaps left by each others' ideas.

"Even if it did mean combining the costs of the two programmes, that is not a high price to pay given the level of dislocation that people are going to experience."

Laila Harre said the problem is urgent enough to warrant legislation being passed even before the next government is formed.

The Child Poverty Action Group spokesperson Susan St John said both parties should extend the in-work tax credit to all families with children.

The group is taking a case against the Government to the Human Rights Tribunal, in which it argues the in-work tax credit discriminates against children whose parents are not working.