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Burger King agrees to pay all staff 80% of their wages during lockdown pay

Thursday, 26 March 2020

Labour list MP Priyanca Radhakrishnan talks to Radio Tarana's Vandhna Bhan about migrant workers who have lost jobs during this coronavirus crisis.

Burger King has agreed to pay workers 80 per cent of their wages while they are unable to work.

More than 2500 employees at the fast-food giant were left in the dark about their income on Wednesday when the lockdown began, Unite Union national secretary Gerard Hehir said.

In a statement to the media on Thursday night, Burger King said it was committed to supporting its staff during 'this unprecedented time'.

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Burger King says it will pay all staff 80% of their wages and some staff 100% of their wages during four-week lockdown.
Burger King says it will pay all staff 80% of their wages and some staff 100% of their wages during four-week lockdown.

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Burger King NZ's owner is the Antares Group. Its chief executive Michelle Alexander said all employees earning greater than the wage subsidy would be paid 80 per cent of their income. 

'If 80 per cent of their earnings takes them below the wage subsidy the full wage subsidy will be paid. Anyone earning less than the wage subsidy will be paid 100 per cent. 

'The Wage Subsidy Scheme is $585.80 for employees working more than 20 hours per week, or $350 for employees working less than 20 hours per week.'

Burger King's competitor, NZX-listed company Restaurant Brands, was paying all staff an amount equal to 100 per cent of their average earnings over the past four weeks, while McDonalds was paying staff 80 per cent of their average earnings over the past month, Hehir said.

'They can afford it as well but good on them for doing the right thing.'

The Government has put in place a wage subsidy scheme.

The $150,000 cap on this scheme was lifted on Monday, meaning larger firms will be able to claim it for all their staff if they experience a 30 per cent revenue drop in any month.

On Thursday Finance Minister Grant Robertson said $1.5 billion had already paid out to more than 244,000 employees under wage subsidy scheme.