Wage deal comes with warning

Bill English. Photo: Getty Images
Bill English. Photo: Getty Images
Wellington: The $2billion settlement to increase wages for care and support workers in the aged-care and disability sectors has been lauded as groundbreaking, but Prime Minister Bill English warned it will be a high hurdle for other sectors.

Mr English and Health Minister Jonathan Coleman set out the details of a Government settlement with unions for aged-care and disability workers - a package which means from July 1, the wages of about 55,000 workers will increase from $16-$18 up to between $19 and $27, depending on skills and experience.

The pay increase was described as the ''biggest pay increase we'll ever get'' by Kristine Bartlett, who had taken the case, and also set an important precedent.

It is the first settlement under pay equity principles in recognition that some occupations dominated by women workers were paid less than men doing jobs which required similar levels of skill.

Mr English said he expected some other sectors to lodge similar pay equity claims, which would be dealt with by a new process for resolving pay equity claims rather than direct Government negotiations.

''The hurdles will be pretty high.

''This is fairly unique set of circumstances. It's not readily or easily applicable outside of government, for instance.''

Legislation to introduce the new pay equity process would go through Parliament this year, and provided for claims to be settled by bargaining rather than in the courts as well as setting out the criteria to be applied.

The education support workers lodged a claim last week.

Mr English also sent a hint other professions in the health sector, such as nurses, should not expect a flow-on pay increase.

''This settlement does shift [care workers'] pay up.

''They will be closer to the rates of other groups, and I'm sure those other groups will accept that the point of such a negotiation was to change relativities.''

Mr English said the $2billion cost over five years did affect the Budget, but it had been a priority.

The Government has to pass legislation to implement the settlement and the unions have to get it ratified by their members, but there has been widespread acceptance by unions.

Mr English acknowledged the unions for a ''constructive approach'' in what he described as tough negotiations. 

-By Claire Trevett

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