New Zealand has a lot of talented IT workers, but it also has a long history of outsourcing and outsourcing to overseas, and it is in this context that the country’s top earners could get their pay cut.
The new Government’s latest pay and working conditions reforms are one of the most ambitious paid leave measures in the world.
But there are concerns that the changes will be too little, too late, with the Government’s own research finding that many of the measures are already having a negative impact on the countrys ability to attract and retain top talent.
In fact, the government’s own report has found that many measures that it plans to introduce under the changes have already had a negative effect on attracting top talent, which is why it recommends it is “critical” that the Government make sure they are effective and “capable of delivering a high quality workforce”.
The new measures also require more skilled IT workers to come to New Zealand to do the work, with new restrictions on where they can work.
The Government is proposing to set minimum levels of paid leave for all IT workers in New Zealand, but some of the new rules also mean that those in skilled IT roles will also need to work at least 10 hours a week.
In a submission to the Government, the New Zealand Institute of Technology (NZIT) said that the rules will not work if companies are not properly prepared.
“The Government needs to put in place a clear set of clear requirements for organisations and the workforce to be able to meet the new requirements in a way that allows for the right mix of skilled and non-skilled labour,” NZIT chief executive Richard Poulton said.
“The new rules should not require more than 10 hours per week of paid time off for those in top paid positions.
The threshold for ‘top paid’ is set at 70 per cent of median earnings in New York City, with those earning over $100,000 a year getting paid at a rate of $1,000 per hour.”
NZIT said that while it was a “good start”, more could be done to “ensure that the new minimum wage rules and the changes to the working hours regime are sufficiently broad to allow for the proper adjustment of workforce levels”.
“We also believe the Government should make it easier for employees in the IT sector to become self-employed,” NZITS CEO Poulson said.
“This will make it possible for companies to more easily attract and keep talented staff, particularly in high-tech industries.”
It also recommended that the legislation be amended to allow employers to hire a “supervisory, technical or equivalent” IT employee, rather than a full-time employee.
It is not just companies that are likely to see pay cuts.
The New Zealand Chamber of Commerce said that IT and IT-related occupations are already seeing job losses, with “millions of dollars in potential wage losses for IT and technology professionals”.
NZIC chief executive Nick Haldane said the reforms are “important for the economy and for the health of New Zealands workforce”.
The Government is expected to release the first draft of the reforms next month.
New Zealand’s IT workers are already paid less than the average US worker The New York Times has found the average IT worker in New South Wales is earning about $10,000 less than a US worker in a similar position.
The New Zealand Government said that “this is a positive step” and said it is committed to “strengthening the skills and skillsets of our workforce”.
“The IT workforce is among the best in the country, and New Zealand is proud of its ability to produce top-quality people for our businesses,” Minister for Employment and Employment, Scott Morrison, said in a statement.
“It’s a proud country that has been able to attract world-class talent from around the world and is proud to have the world’s third-best skilled labour force.”
New Zealanders have a strong reputation in the technology industry, and the Government is committed, as we have done previously, to maintaining our position as a world-leading global tech hub, including in the tech sector, where the country leads globally.
“We will continue to do everything we can to help New Zealand become a technology hub, a hub of talent and a hub for economic growth.”
The Government has also set out its plans to ensure “flexibility and flexibility for all sectors of New England”, but is not proposing to introduce paid time-off for IT workers.
NZ’s IT workforce has already seen pay cuts NZ’s IT and Information Technology Industry Council has warned that IT workers’ wages will be reduced if the reforms go ahead.
A report by the Institute for Regional Economics (IREA) found that “unwanted, or low-paid” IT workers will be able “to earn significantly more in the new year than