6 Oct 2023

Pay equity deal for care and support workers delayed by review

10:19 am on 6 October 2023
Aged care workers are calling for enforceable minimum staff numbers.

Aged care workers protesting at parliament in 2021. Photo: RNZ / Soumya Bhamidipati

The Aged Care Association is dismayed by Te Whatu Ora's decision to subject a pay equity claim for care and support workers to another review.

The association's chief executive, Katherine Rich, said it was unconscionable for Te Whatu Ora/ Health New Zealand to try to overturn the findings from investigations into gender-based undervaluation, under the Equal Pay Act.

Te Whatu Ora has said they support addressing sex-based undervaluation of work. Two pay equity claims have been settled, for administration, clerical and nurses, and two are in ratification, for midwives, scientific and technical staff.

Negotiations have been in progress for care and support workers since July 2022 and will affect the pay rates for about 65,000 workers, who have been found to be underpaid.

Rich said some of the country's most vulnerable workers would be impacted by the delay to the pay equity settlement.

"These workers are mainly women, they work with the elderly, they work with the disabled, they work with people who have mental health issues.

"They are amongst the most lowest paid and vulnerable workers in New Zealand.

"So to hold this up with a bogus review is completely unacceptable."

Rich said the call for a review was a "delaying tactic" designed to try to reduce the pay increase for care and support workers.

"In terms of the care and support workers, they deserve this pay equity settlement. It will be transformational for them and any delay is unconscionable," she said.

Unions and employers had agreed on the pay equity deal, but Te Whatu Ora, which was the funder, was holding progress back, she said.

"This has been a real surprise - it's completely disappointing because the unions and employers are set to go.

"Unfortunately, the pay equity legislation in place right now expires in December this year, so it's really important that we get this deal on the road."

The Aged Care Association represents more than 90 percent of workers in the sector.

Te Whatu Ora chief executive Fepulea'i Margie Apa said they recognised the significant contribution of care and support workers make to New Zealand's health and disability system.

"As a key funder and representative of other agencies we have provided significant resources and support to help the current claimants, whom represent 29 percent or estimated 17,400 of the total workforce to work through this process," Apa siad.

Apa said the independent review would not involve starting again, but they wanted further assurance on specific questions.

"Once these questions have been answered, we look forward to progressing to the next stages of the claim with assurance that the process is supported by robust evidence of undervaluation."

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