CTU MEDIA RELEASE
3 September 2007

Court action to stop money getting to low paid aged care workers is shameful, say unions.

Unions in aged care are welcoming recently completed negotiations with employers over passing on government funding to boost the low wages of workers in aged care, but are disappointed by the legal action some employer groups have initiated.

Health Care Providers New Zealand is seeking an interim injunction allowing some health care providers in the aged care sector not to have to pass on the increases that came in this year’s budget.

“The CTU is very concerned about the legal proceedings that Health Care Providers New Zealand has instituted to challenge the DHB contract requirements.  These are some of the lowest paid workers in the country and it is shameful that HCPNZ has instigated a process that is getting in the way of workers getting this funding increase,” CTU secretary Carol Beaumont said. 

Some employers are acting responsibly and fairly passing the funding increases however.

“In the last two weeks NZNO and SFWU have concluded negotiations with Guardian Healthcare (the largest aged care residential employer in New Zealand), Metlifecare, Qualcare Northern and Presbyterian Support Central, covering approximately 4000 nursing, care and support workers,” John Ryall, National Secretary of the Service and Food Workers Union Nga Ringa Tota said.

“These proposed collective employment agreements have all established a minimum rate of pay of $12.55/hour and have given all caregivers and service workers a $1.00 an hour pay increase.” 

“This is the biggest single one-off increase that these workers have received in the last 20 years and means that caregivers employed by these organizations are now paid between $12.55 and $16.00 an hour.  This is directly due to the increased Government funding targeted to these low-paid workers,” Mr Ryall said.

Ends.