Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Guardian sale reaps $70 million profit

12 06 05

Guardian sale reaps $70 million profit

but offers staff just 25 cents an hour

The Service and Food Workers (SFWU) says the sale of aged care giant Guardian Healthcare has been done on the backs of low pay.

Alastair Duncan of the SFWU says the news that Guardian's owners' PEP will reap a profit of $70million on a seven month investment hides some nasty truths.

"Amid all the corporate back slapping and talk about profit margins there needs to be some serious reflection on the fact that these sorts of takeovers are conducted on the backs of a highly skilled but lowly paid workforce."

The SFWU and the NZ Nurses Organisation are currently in negotiations with Guardian for a national collective agreement.

Alastair Duncan says most caregivers are paid less than $12 an hour.

"The last pay offer from GHG was less than 25 cents an hour for most caregivers.

"Those sorts of profits are obscene when compared to the wages paid to the people who work in Guardian's rest homes and hospitals.

"While we see the purchase as vote of confidence in the sector it is well past time the owners paid some serious attention to the wages paid to the very people who form the backbone of the business - the caregivers, support staff and nursing staff.

"DCA says the purchase is a "beachhead for expansion." Until they pay attention to what staff are saying they may end up stuck in the sand."

Alastair Duncan says union delegates have warned Guardian that unless there is real progress in the pay talks the chain may face its first industrial action.

"If Guardian is serious about staying in the business in the long term it needs to focus a lot more on the needs of residents and staff.

Guardian Health was purchased by Pacific Equity Properties last November for $117 million and on sold to DAC for $300 million. During this time Guardian expanded its base buying up the Care and Independence chain for $40 million.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>