6 Aug 2011

Don't tinker with KiwiSaver, employers say

7:00 am on 6 August 2011

Employers have raised concerns about talk of making changes to KiwiSaver, warning that political tinkering is disruptive and costly to business.

Prime Minister John Key has said the Government is considering automatic enrolment of all workers in the workplace savings scheme.

The Employers and Manufacturers Association says any changes are costly to employers and could put them off joining the scheme. It wants a bipartisan approach to the scheme.

Business New Zealand chief executive Phil O'Reilly says politicians need to carefully examine whether all firms will be able to shoulder the extra burden - the problem being particularly real for small companies.

Mr O'Reilly says care needs to be taken when changing KiwiSaver, because too often firms aren't able to plan to meet the extra costs.

That, he says, could have negative implications for how much employees or paid or whether they are hired at all.