New Zealand’s Public Service Association (PSA) has come out in strong support of a Government plan to develop a social insurance scheme.
National Secretary of the PSA, Kerry Davies (pictured) said the scheme would protect all workers, but particularly those employed in sectors prone to change and displacement.
“We will work together with Business NZ and the Government to explore a system, which could provide 80 per cent of a workers’ income for a period after they lose their job,” Ms Davies said.
“Many people lost their jobs due to COVID-19 last year, and for some it was the first time they ever had to rely on the welfare system for support,” she said.
“New Zealanders understand now more than ever that hard times can arrive rapidly and unexpectedly.”
Ms Davies said losing a job caused immense financial and emotional distress.
“Workers make plans and budgets based on their current income, so it makes sense to ensure a period of financial continuity for people who lose their jobs,” the National Secretary said.
“Combined with active labour market policies such as training and targeted skill development, social insurance will help people transition to new jobs and limit the damage caused by job losses.”
She said more than 50 per cent of unemployed people found new jobs within three months, and 90 per cent did so within a year.
“Increased financial stability during this transition will enable workers to find jobs that match their skills and experience,” Ms Davies said.
“This leads to decreased turnover, increased worker wellbeing, and improved services,” she said.
Wellington, 26 May 2021
