Pay equity law delivers mixed success
The Care and Support Workers (Pay Equity Settlement Act) 2017 ends in July. When it came into effect the act was heralded for addressing historic gender discrimination in wages for care and support workers.
The settlement ushered in unprecedented wage rises, as well as training and career opportunities for care and support workers. These measures not only benefited workers but would also contribute to a sustainable care and support workforce – one that could meet future skills shortages and ensure ongoing high-quality care for our most vulnerable population.
But new findings from our AUT research suggest a different reality. Despite boosts to hourly wages, the sector-wide benefits the act sought to address have not materialised. Instead, improvements have been made case by case and largely at the discretion of individual employers.
The ad-hoc nature of this implementation is exacerbated by the invisibility and isolation of the work and those who do it.
We collected data from care and support workers, nurses and healthcare managers at the end of 2019 – just before the pandemic dealt a blow to those already working in challenging conditions. We found three key areas of concern: takehome pay and job responsibilities; training opportunities; and quality of care.
The settlement guaranteed wage increases to address historic gender discrimination, not an expectation that workers should complete more or different tasks on the job.
However, while just under half of care and support workers said their job had stayed the same, nearly a quarter had more responsibilities and just over the same number had a bigger workload.
The settlement also made clear that no care and support worker should be worse off. Our survey found that in home and community support, more than a third of these workers had their weekly hours reduced against their wishes. Fewer hours means less pay, even if you’re earning a higher hourly wage.
Why weren’t the changes put in practice as intended? More than 80 per cent of managers surveyed said the funding to cover additional wage costs of the settlement was inadequate – indicating at least one reason was a lack of funding for the change. This begs the question: was the settlement set up to fail from the outset?
Acornerstone of the settlement was to build a thriving workforce supported by flexibility across roles, and training and career opportunities. Under the settlement, all care and support workers would have the opportunity to gain NZQA Health and Wellbeing Certificates.
While nearly three-quarters of them said they were given this opportunity, a quarter did not have the training they were entitled to. A similar number of managers reported that, perhaps due to cost, they were more selective now about to whom they offered training.
The act aimed to improve conditions for care and support workers, a move that would ensure a sustained or improved quality of care for clients. Our study showed most nurses, managers and care and support workers felt the standard of care remained the same. Just under a quarter said it had improved, and nearly one-in-five said it had declined.
Our research makes clear the improvements and the gaps – the realities of the act for those on the ground – for the workers. Before the 2017 act comes to an end, it is crucial that policymakers and funders understand these realities.
This workforce is the glue for many people and their whā nau, contributing to healthy, thriving communities. Now is the time to assess the evidence and build on, and reward, the skills, experience and knowledge of this workforce.
That is the best way to ensure the next iteration of the pay equity settlement can realise its potential – for the sector and the vulnerable community it supports.