Fulton Hogan asks staff to take leave

AUCKLAND: Fulton Hogan is asking its estimated 5000 New Zealand employees to take two weeks’ annual leave in April, despite receiving the Government’s wage subsidy to help it manage through the coronavirus crisis and national lockdown.

Chief executive Graeme Johnson made it clear in a video for staff obtained by BusinessDesk that the company had previously been wanting employees to take even more annual leave through the crisis, although Fulton

Hogan has still left open its ability to seek more in future.

‘‘Based on our current outlook, I’m pleased to confirm that, for those not working, the requirement to take annual leave from April 15 will now be capped at two weeks during this initial Alert Level 4 period,’’ Mr Johnson said in the video.

‘‘After this, people will continue on 80% of their ordinary income as originally planned,’’ Mr Johnson said, telling staff they are welcome to take more annual or longservice leave.

After urging them to sign ‘‘this temporary variation to your employment agreement,’’ Mr Johnson said: ‘‘If you don’t agree to the plan, we will make contact with you to outline your options.’’

He did not spell out what those options are and the company did not respond to requests for comment.

Mr Johnson said he and other executives will receive 80% of their salaries through the crisis, but that the company had applied for the Government’s wage subsidy and was told it had been successful on April 6.

‘‘This was key to be able to progress and finalise our staff support plan that we have been developing with you since the Alert Level 4 restrictions were signalled,’’ he said.

The Government’s wage subsidy is $585.80 a week for 12 weeks for those working 20 hours or more a week, and $350 per week for those working less than that, paid as a lump sum.

One of the conditions of the Government’s subsidy is that employees have to agree in writing to any variation of their employment contract and that ‘‘you will not unlawfully compel or require any of the employees named in your application to use their leave entitlements for the period you receive the subsidy in respect of those employees’’.

However, the key words in that condition are ‘‘unlawfully compel’’ — Mr Johnson specifically cited section 19 of the Holidays Act, which allows an employer to require an employee to take annual leave after giving at least 14 days’ notice, which is why the leave begins from April 15. —BusinessDesk