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Women working in manufacturing and production - Source: ONE News -
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The nine-day working fortnight scheme has been expanded to include companies with 50 or more employees.
When the scheme was introduced in March, following its proposal at the Job Summit in February, it was limited to companies with 100 or more employees.
Under the scheme the government pays workers the minimum wage ($12.50 an hour) on the tenth day of employment, for up to five hours a fortnight.
Workers under the scheme, which is valid for six months from sign-up, cannot be made redundant.
Prime Minister John Key announced on Thursday that the extension would benefit up to 2,000 companies and around 140,000 employees.
"The scheme was expanded following discussions with employers and unions since the Job Summit. They endorsed its expansion to medium-sized businesses because it may help save jobs," says Key.
Key says it is difficult to estimate the cost of the expansion, but estimates that if around 6,000 workers from medium-sized businesses take part in the scheme, it would cost the government around $4.5 million.
Prior to Thursday's announcement, just three larger companies had signed up to the scheme.
Fisher & Paykel Appliances was the first to take up the offer in a bid to save jobs on its Auckland refrigeration assembly workforce. It was followed by Oamaru-based Summit Wool Spinners and another unnamed company.
Unions have applauded the scheme and had been advocating that it cover smaller firms.
"It's not a silver bullet...but it's something practical that can be done to prevent redundancies and keep people in work," says National Distribution Union spokesperson Robert Reid.
Key says the scheme will not be expanded to include companies with fewer than 50 employees due to the difficulty of administering it in small workplaces.
"However, work is under way on measures to help small firms, and there will be further announcements on this in due course," he says.
