Source: PSA
With Brent crude now trading close to US$100 a barrel, the PSA is calling on the Government to make April’s temporary 30 percent mileage rate increase for home and community support workers permanent, and to go further.
“When Health Minister Simeon Brown announced this increase in April, he said it was targeted and temporary, tied to a consistent fall in petrol prices that hasn’t happened,” said Fleur Fitzsimons, PSA National Secretary.
“Global oil prices are climbing again on the back of the Iran war, and these workers will soon be back where they started: paying to go to work themselves.
“Home support workers cannot face a cut in the small fuel subsidy given we are in a cost-of-living crisis, and they have already had their pay equity claim cancelled.”
With petrol prices are about to surge again, Finance Minister Nicola Willis told The Post she is now seeking advice on whether to extend temporary support measures. The mileage rate for home support workers had been frozen since March 2022 – the April decision was for an increase in the allowance from 63.5 cents to 82.5 cents per kilometre, to remain in place for up to 12 months, or until the price of 91 octane petrol fell below $3 per litre for four consecutive weeks.
“The mileage allowance must be set at an adequate level that properly reflects costs and we still need to see the annual statutory review of the In-Between Travel allowance result in further increases. Workers can’t afford to wait any longer especially with the Government about to pass the Employment Leave Bill which further erodes their holiday and sick leave entitlements,” said Fitzsimons.
“Home support workers are essential. They care for our elderly and disabled New Zealanders, driving between clients in their own cars, on one of the lowest reimbursement rates of any publicly funded workforce. The Government has the power to fix this permanently, immediately, without waiting on Treasury or IRD. It just needs the will to do it.
“In a cost-of-living crisis this government promised to fix, it’s time to stop treating essential workers’ pay and conditions as an afterthought. We’re writing to the Finance and Health Ministers today calling on them to make this increase permanent and go further by properly reviewing a rate that’s been inadequate for years.”
ENDS
Background – pay equity legal challenge
The joint union legal challenge to the Government’s pay equity claim under the Bill of Rights Act has its first full hearing at the High Court in Wellington on Monday 3 August. The PSA has also lodged a complaint with the Labour Inspectorate over this issue.
Recent statements
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.