Deal puts salaries 'on par' with Australian counterparts
About 30,000 nurses in New Zealand are set to receive a pay rise by more than 14% following an interim order from the Employment Relations Authority (ERA) to fix interim pay equity rates.
This will put New Zealand's nurses "on par dollar for dollar with their Australian counterparts" in the first quarter of 2023, according to Fepulea'i Margie Apa, chief executive of Te Whatu Ora.
"In addition, there will be a lump sum payment and the rates will be effective from 7 March 2022," she added.
Te Whatu Ora previously agreed to fix interim pay equity rates for New Zealand's nurses last year, but this was put on hold after unions went to the ERA to seek back pay to December 2019.
On Monday, Te Whatu Ora asked the ERA to issue an interim order so nurses can receive the pay equity rates at the level of the Agreement in Principle while the ERA works through the legal process.
Apa said they are grateful for the ERA's prompt decision on the matter.
"What really pleases me is that we're addressing a legitimate claim from a key part of the health workforce that has been undervalued for too long," she said.
"The unions' legal challenge is not affected by today's decisions, but that's too long to wait when we've already agreed to these pay equity rates."
Apa said they are "pulling out all stops" to deliver the new pay rates for Te Whatu Ora nurses.
"We are working with the government on the next steps to make funds available. Coordinating more than 20 different payroll systems is a complex task, but we're pulling out all stops and putting extra people on so the new rates can be paid as soon as possible."
Health Minister Andrew Little said the government is also welcoming the interim order from the ERA.
"I will now take the next steps to make the funds available when Te Whatu Ora payroll systems are ready to go. This means nurses will get a significant pay rise in their pockets in the new year," he said.
Acknowledging that the litigation with the ERA will take a "long time to resolve," Little encouraged all parties involved to "seek to resolve issues by agreement as they arise.”
The upcoming increase to nurses' pay adds to the growing number of healthcare workers receiving a salary hike. Early this year, about 10,000 workers with health administration roles were covered by a "historic" pay equity settlement that will grant some of them up to a 40% pay rise.
In November, about 20,000 frontline community health workers in aged-care facilities, hospices, and Māori and Pacific health-care organisations will also be getting a pay rise after the government invested an ongoing funding of $200 million a year so they can get paid more.
