• Wide-spread payroll errors have led to a situation where, according to Government figures, New Zealand workers are collectively owed up to $2.3bn in unpaid leave payments going back six years.
• The Government was aware of the scale of this situation two years ago but hasn’t done enough to fix it.
• CTU Affiliates have been aware of the issue in a few sites and have negotiated audits and settlements in some, but until seeing the Government figures had no way of knowing the scale of the issue.
• This is too big to fix on a case by case basis. It needs Government to work with unions and business to find a high-level solution.
• In the meantime the statute of limitations means New Zealand workers are collectively losing up to a million dollars a day in back pay as their right to it expires.
• That’s why today we are proposing that this limit is urgently suspended so that New Zealanders don’t continue to lose money while the problem is fixed.
• In order to do this we have produced a Bill for the Government that stops the clock on the statute of limitations and are asking that they pass it under urgency.
• We are confident that the Government will get support for the Bill across the house to do so.
• The Government have the opportunity to stop New Zealanders losing a million dollars a day and to create space to fix the payroll problem so that money goes to the Kiwi workers who are owed it.
• The Government can take this important first step next week when the house sits. It’s up to them.

Pertinent Facts:

• Several employers that affiliates have discussed this with have agreed to payroll audits, and at least one has negotiated a back-pay settlement with union members – in that case $17,000 in back-pay was paid to 70 workers.
• We have identified this problem across the workforce – from health, to fast food, to ministries – including MBIE – and other employers.
• This is not a reason to change the Holidays Act – not all payroll providers have been calculating leave incorrectly.
• Exemptions to the Limitations Act are not unusual – there are already ten in place covering matters including rent arrears, and interests in trusts.
• The Government kept the scale of this problem secret for two years – this delay alone will have cost New Zealanders up to half a billion dollars.