Pay win a pay loss for some care workers

Plans to restructure jobs at a Blenheim rest home months after a historic equal pay settlement has care workers ‘‘angry and upset’’.

Aberleigh Rest Home announced its restructure plans in a letter to staff last month, suggesting care workers might have to reapply for their jobs. Under the proposal, some would become ‘‘home assistants’’.

Industry union E Tu¯ described the restructure as a deliberate attempt to avoid paying care workers under the pay equity settlement, an agreement to lift the hourly minimum wage for agedcare workers from $15.75 to $19. Experienced carers would earn up to $23.50.

The hourly rate for home assistants would be between $16 and $17. They would not provide personal care for residents but perform tasks, such as serving food, cleaning and laundry.

The letter sent to staff said the proposal was the result of ‘‘concerns we have regarding the financial implications of the equal pay settlement on the financial viability of Aberleigh Rest Home’’.

Association chief executive Simon Wallace said other rest homes were considering cutting staff.

‘‘That’s exactly what Aberleigh Rest Home is doing. And they’ve done it in consultation with Dementia Care New Zealand and the union. It’s not what they want to do, it’s what they have to do.’’

‘‘We certainly don’t condone rest homes downgrading roles to avoid obligations under the equal pay settlement.

‘‘But because it hasn’t been fully funded by the Government, in order to stay operating and continue to provide a service to the community, rest homes have to review their operations to avoid closing down.’’

E Tu¯ assistant national secretary John Ryall said the Ministry of Health assured the settlement would be fully funded when the deal was announced in April.

‘‘If it’s not, then the Government must provide the funding to ensure care workers don’t pay the price of any shortfall.’’

Ministry of Health director of service commissioning Jill Lane said the pay equity settlement was fully funded. Aged-care providers were given an advance payment to fund the pay increase for three months from July 1.

It would also provide funding in advance to offset costs related to the settlement, including cover for statutory holidays, sick leave, time-and-a-half on public holidays, ACC levies and KiwiSaver costs.

‘‘Providers will be expected to manage wider wage pressures through the usual contract negotiation processes,’’ Lane said.

She would still reapply for her position, even if it meant becoming a home assistant and taking a pay cut, she said.

Ryall said that if the union found employers were breaching the Equal Pay Act it would take legal action.