Covirus 19 coronavirus: Kiwi companies adopt the government wage subsidy scheme

The Warehouse, Kmart, debt collectors, McDonald’s, Destiny Church, Fletchers, and New Zealand Rugby now have the common wage subsidy scheme.

With more than $ 7 billion already paid, a search of the registry shows that many of New Zealand’s largest and best-known companies have not been immune to the impact of Covid-19 and the crash.

The Warehouse received nearly $ 52 million, the highest found by the Herald, to support more than 8,500 workers, according to the online tool from the Ministry of Social Development.

Fletcher Building has received more than $ 66.3 million.

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The scheme supports more than 40 percent of the country’s workforce.

To obtain the scheme, companies must show a 30 percent drop in business between January and June as a result of the pandemic.

After the closure was announced, the Warehouse incorrectly announced that it would keep its doors open as it was an essential service, but was promptly told otherwise by the Government.

But he was allowed to revive his online store, along with other retailers such as Noel Leeming and Kmart, to sell essential items.

Kmart and Noel Leeming also applied for the scheme and paid them around $ 12 million each.

Fletcher Building, the nation’s largest employer with a workforce of 18,000 people, received $ 66.32 million.

He was at the center of the controversy after giving staff a 12-week pay proposal whereby non-working staff would cut their wages by up to 70 percent.

Employees who don’t work during the lockout would earn an average of 80 percent of their base salary for the first four weeks, but this would drop to 50 percent over the next month and 30 percent during weeks nine to 12.

Downer New Zealand received more than $ 38.2 million and Fulton Hogan received $ 34.2 million through the scheme.

Spotless, which provides various operations and management facilities, has been paid $ 25.2 million.

Embattled Mediaworks has claimed more than $ 7.8 million through its television and radio arms.

Rugby New Zealand claimed $ 3.5 million for 502 employees.

Churches and debt collectors and fast food companies have also apparently not been immune to the impacts of Covid-19 and the blockade.

McDonald’s was paid $ 6.8 million and restaurant brands, which own KFC and Pizza Hut, were paid $ 21.8 million.

City Church Tauranga received nearly $ 104,000 for 18 employees, while Destiny Church’s Nelson and Whakatāne branches collectively received $ 60,436 for nine employees.

Debt collectors are also suffering; Debtworks Limited claimed $ 150,000 and Prime Debt Collections obtained $ 49,3207.

Other large companies receiving the subsidy include retailers Kathmandu (601 employees, $ 3.6 million paid), Harvey Norman (1850, $ 12.7 million) and Trade Me (591, $ 4.1 million). The forest company Juken received $ 3.7 million to subsidize 531 employers, and the mining company Oceana Gold received $ 6.1 million to cover 983 employees.

On Monday, almost 10,000 applications were made to the wage subsidy scheme alone. It is estimated that between $ 8 and $ 12 billion will eventually be paid.

Finance Minister Grant Robertson said last week that more than a million workers were being supported by the scheme.

“We may not be able to save every job and every business, but we are making sure that people have the underlying support they need to overcome this,” said Robertson.

But a report by expert group The New Zealand Initiative released last week said the scheme would “insufficiently protect” New Zealanders from the worst that will come during the Covid-19 pandemic.

New Zealand’s fiscal response to the virus was placed in the middle of the international economic support package; Germany topped the list.

The Australia JobKeeper package is a payment of A $ 1500 per fortnight per employee.