New Zealand Nurses accept historic pay equity settlement

Published 1 August 2023 | 2 min read

Paying equity for New Zealand nurses and healthcare assistants

In recent times, the issue of gender-based wage inequality has garnered significant attention within New Zealand's healthcare sector, specifically concerning nurses and healthcare assistants. For years, these dedicated professionals have struggled with pay disparities compared to male-dominated professions, leading to growing concerns about their financial well-being and job satisfaction.

The pursuit of pay equity

The root of this problem lies in a pay equity claim lodged by the unions in 2017 under the Equal Pay Act. The claim aimed to rectify long-standing sex-based discrimination and align the wages of nurses and healthcare assistants with those in male-dominated professions. The journey towards resolution has been challenging, involving prolonged litigation in the Employment Relations Authority (ERA) and Employment Court since early 2022.

Amidst these struggles, there is a glimmer of hope in the form of an historic pay equity settlement that has been accepted by nurses and healthcare assistants employed by Te Whatu Ora. This settlement offers some individuals the prospect of receiving lump sums and backpay of up to $28,000. However, it's important to note that this acceptance does not mean the threat of strike action by nurses is completely averted, as they are yet to vote on a separate collective agreement offer from Te Whatu Ora.

While the pay equity settlement represents a positive step towards addressing gender-based wage inequality, it does not entirely resolve the issue at hand. The proposed solution arises from mediation between Te Whatu Ora, the Nurses Organisation, and PSA, reflecting a collaborative effort to tackle the problem. However, the acceptance of the settlement doesn't guarantee a comprehensive resolution as some challenges remain unresolved.

Charting a path towards wage justice and fairness

The proposed settlement includes backpay and lump sums that could potentially alleviate some of the financial strain experienced by nurses and healthcare assistants. These revised rates, to be backpaid to March 7, 2022, aim to bridge the wage gap that has long persisted in the healthcare sector. The acknowledgement of gender-based inequality is a significant milestone, and it demonstrates progress towards addressing a deeply-rooted issue within nursing in Aotearoa (New Zealand).

Nurses Organisation (NZNO) chief executive Paul Goulter's statement reflects a desire for further progress and change. He highlights the need for the new rates to be extended to all nurses working in New Zealand, emphasizing the importance of pay parity across all nursing sectors. This view aligns with the pursuit of wage justice and equal treatment for healthcare professionals across the board.

On a parallel note, voting was open for NZNO's Te Whatu Ora members to decide on the latest collective agreement offer from hospitals. This offer includes a flat rate salary increase and a percentage increment in the subsequent year. The acceptance of this offer could potentially avert a planned 24-hour strike.

The acceptance of the historic pay equity settlement marks a significant milestone in addressing gender-based wage inequality within the healthcare sector. As small-to-medium New Zealand managers and decision-makers, it is crucial to recognize the importance of fair compensation and equal treatment for healthcare workers. While progress has been made, it is also essential to acknowledge that challenges persist, and further efforts are needed to achieve a comprehensive solution.

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