Pay equity agreement signed
The Government has signed a
$173.5 million pay equity deal that will see a group of health workers paid more.
Health Minister David Clark signed the ‘‘historic’’ deal in Wellington yesterday, along with cosignatories and interested parties, such as mental health and addiction care workers, union representatives from E tu¯ and the PSA, as well as the Ministry of Social Development and ACC.
Clark acknowledged the ‘‘courage and perserverance’’ of Lower Hutt care worker Kristine Bartlett who filed the pay equity case in the Employment Court in 2012.
An agreement to pay workers more was reached in 2017, but excluded those in the mental health and addiction areas.
In June, Cabinet agreed to include those workers and extended the settlement to do so. About 5000 workers were affected.
From August about half of the
5000 workers will get a pay rise of more than $3 per hour (estimated to be about $120 more before tax). One in five will get an increase of more than $5 an hour, or about $200 more for a 40-hour week. Backpay would also be included.
Clark said in real terms more than half of the 5000 workers would get about $3 an hour more. One in five would get about a $5 an hour increase.
PSA assistant secretary Kerry Davies said unions had been working hard for equal pay and the signing was recognition of mental health and addiction workers.
‘‘These workers were unfairly left out of the equal pay care and support settlement by the National government, and we’re thrilled to see this wrong righted.’’
Bartlett’s victory initially paved the way for pay equity to about 55,000 workers at a settlement cost of about $500 million.
A claim was then lodged with the Employment Relations Authority by the Public Service Association and E tu¯ , seeking that mental health and addiction support workers be paid the same increased wage rates.
The new package would be implemented over a five-year term and funded through an increase to Vote Health.