I'm not convinced that will be the case again this time. There are thousands of small businesses, their owners and employees, hammering very badly right now. The wage subsidy covers only a small part of that blow
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Undoubtedly a hard time for business owners but I reckon most employees will be doing just fine on mostly full wages and nothing to spend money on but food and limited online retail.
Once the lockdown is over the job market will remain tight, the government will splurge a bit more free money and the average consumer will have a massive urge to get out and spend.
After all retail is the best therapy these days.
I spoke to a young owner of an electrical business yesterday. He has 20 employees. He told me they are all earning wage subsidy only ATM, $ 650 per week. Prior to lockdown, they were averaging $1,150 in the hand with lots of work. Big mortgages. He reckons the only place they will spend money in the next few weeks is the supermarkets and petrol stations. But then we have the large number of people on benefits and they'll probably be much less affected and can keep spending !
Agree 100%
As far as I am know, (and I am certainly not pretending to be an employment law expert so I could be wrong), employees have to be paid a minimum of 80% of their normal wages. Whilst in this situation the owner of the business may be either breaking the law or getting around it some other way, I don't think that's a widespread issue. For what its worth in my small practice no client has asked me if they are allowed to reduce the amount they pay their staff during lockdown so as far as I am aware all are paying the normal wages. Further, employees don't have the usual commuting and parking costs while in lockdown which for some in Auckland can be as much as $100 per week.
I'm with allfromacell on this one. Like many others I and am going to hit the shops with a real vengeance as soon as we got to level 1.
I think this time I get it, what the meaning of the term "revenge spending" really means. (Live for today for who knows what the heck tomorrow may bring !).
Hopefully any stock issues have been helped by a brief pause and the shelves are fully stocked ready for Beagles spending spree :p.
Thanks...finally got around to looking it up, (as mentioned above, no client has asked me about reducing pay rates for staff)
https://www.workandincome.govt.nz/co...-payments.html Excerpt
If you are receiving the COVID-19 Wage Subsidy August 2021, you must use your best endeavours to pay the employee named in your application at least 80% of their usual wages. If that isn't possible, you need to pay at least the subsidy rate (ie, full-time or part-time).
It would seem to be morally repugnant to pay people less than 80% of their normal wages unless the employer is under severe financial pressure.
I know a lot of employees sitting at home twiddling their thumbs on 100% of what they normally get. Maybe lots of employers have listened to Cindy's constant P.R. "Be Kind" statements ?
Last year, the game they played was to "ask" you accept a reduced pay, therefore you have agreed to it and is a variation to the contract. If you didnt you'll be made redundant. Fletchers have said they'll pay 100% up until yesterday but will review after that. Will be interesting to see what they do with Auckland at level 4 for weeks. Guarantee itll be less than 80% normal pay.