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Supermarket Group Takes Voluntary KiwiSaver Step

Contributor:
Fuseworks Media
Fuseworks Media

Under 18-year-old KiwiSavers working at one of the country's biggest
supermarket chains will receive the bonus of employer contributions
from April 1.

Australian-owned Progressive Enterprises, which operates the Foodtown, Countdown and Woolworths chains announced the move today.

Under KiwiSaver legislation, from April 1 employers must start contributing 1 percent of an employee's pay to their KiwiSaver account -- rising to 4 percent by April 1 2011.

But there the requirement is only for workers aged over 18.

Progressive's human resources general manager Catherine Flynn
said the company would also contribute 2 percent of an employee's pay
in the first year, rather than the mandatory 1 percent.

"Last year we made a commitment to advance youth workers to our
adult rates of pay which exceed the legislated minimum wage rate.

"This year we are continuing to raise the bar for the under 18s by offering KiwiSaver contributions to participating younger members of staff at our own expense," she said.

"As one of New Zealander's largest employers, we recognise the
importance of supporting our employees who choose to save for their
future through KiwiSaver, whether retirement is around the corner or a long way off.

"These initiatives translate the commitment we have to our team into real, tangible benefits."

National Distribution Union retail secretary Maxine Gay
congratulated Progressive for providing superannuation entitlements to
all of its eligible workers regardless of age.

She said other employers should follow the company's lead.

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