Radio New Zealand - Te Reo Irirangi o Aotearoa

Wage cuts agreed at Taihape health service

Updated at 6:57 pm on 30 July 2010

Taihape's public health services appear to have been saved after last-ditch talks hatched a rescue deal a day before bankruptcy.

The deal now needs approval from the Whanganui District Health Board but both sides expect the board will accept the agreement.

Trustees of Otaihape Health were ready to declare the service bankrupt on Saturday, 31 July, after unions rejected a rescue plan which, among other things, called for about 20 nurses to take a pay cut of 30%.

However, trustees and union members agreed to a new deal negotiated on Thursday.

The Nurses Organisation says pay cuts of less than 10% will be spread evenly over all the employees, except the lowest paid.

It says the deal achieves the same savings as the rejected proposal, and must now be signed by Whanganui DHB.

Otaihape Health Trust chairman Jock Stratton thinks the board will approve.

He expects it will call a special meeting to decide the fate of Otaihape Health.

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