Opening of books must force Opposition parties to commit to pay equity – PSA

– Care and support workers claim must be funded and settled by next Govt. in first 100 days

– Release of the cancelled claim details reveals they are underpaid by as much as 38% because they are women

The PSA is calling on Opposition parties to be explicit on their commitment to settling the care and support workers’ pay equity claim within 100 days after today’s opening of the books at the Pre-Election Fiscal and Economic Update.

This comes as the PSA and the NZ Nurses Organisation reveal publicly the precise historic undervaluation of care and support workers showing they have been underpaid by between 24 percent and 38 percent.

“We know there is strong public support for restoring pay equity and 65,000 care and support workers must be first in line given that the work on their claim has already been completed, the settlement is ready to go,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“Today the rubber hits the road. The fiscal and economic pathway will be clearer. That means there will no longer be any excuse for Opposition parties not to walk their talk and spell out how they will deliver on their repeated public commitments to reinstating pay equity for care and support workers.

“Today we are revealing the details behind the completed work of the pay equity claim for care and support workers. Their claim, along with 32 other claims, was cancelled, under urgency, without consultation, by the Government last year in a disgraceful act of wage theft.”

The historic undervaluation to support the pay equity claim of care and support workers was determined by using five comparators – similar occupations – to calculate what they should be paid for comparable work (see background below).

Care and support workers are on average more than $29,000 worse off because of the scrapped pay equity claims with a level four support worker now missing out on a rate of $42.64 an hour.

Opposition parties have been briefed on these calculations.

“Taking the mid-point of the range, care and support workers, who carry out essential work caring for our most vulnerable, are due a pay rise of 30 percent. That would make a huge difference to their everyday lives in a cost-of-living crisis. For many that helps secure a deposit on a first home.

“There is strong public support for settling claims – a Talbot Mills poll the PSA commissioned shows that people think hitting fiscal targets should take a back seat to restoring pay equity. 49% think the surplus target could be pushed out a year to reinstate pay equity.

“Voters get what is at stake and are prepared to push out fiscal targets to do what is right for underpaid workers. Politicians need to listen,” said Fitzsimons.

NZNO aged care delegate and pay equity spokesperson Lisa Marriner said; “The evidence from our pay equity process showed our work had been undervalued, and the work needed to settle the claim was done. Cancelling the claim didn’t solve the undervaluation and it didn’t change the needs of the people we care for. It just left workers waiting again for the fairness we were promised.

“Pay equity is good for workers, good for families and good for the communities we support. The evidence has already been gathered, and a solution is ready to go. What aged care workers need now is a clear commitment and funding to settle the claim and restore a pay equity system that workers and employers can rely on.”

Fleur Fitzsimson said the PSA would be holding Opposition parties to account for the promises they have made to workers to date as we head towards 7 November.

“In coming days and weeks, we expect firm commitments to settle the care and support pay equity claim. Voters need to know.

“The next Government must right the wrongs of the past and do the right thing for the 180,000 workers predominantly female workers who were sacrificed by this government for its fiscal priorities.”

1. Fund and deliver the pay equity settlement for care and support workers, based on established undervaluation, within its first 100 days.

2. Repeal the 2025 changes to the Equal Pay Act, reinstating legislation that gives New Zealand women genuine access to pay equity and restore the cancelled claims and reviews.

Under the Equal Pay Act 1972 “comparator” is the male-dominated workforce a claim’s pay is benchmarked against. A comparator looks at occupations that are the same or substantially similar to the claimant workforce’s work, or are different work, but involving similar skills/experience, responsibilities, working conditions or degree of effort.

For care and support workers, the comparators were similar occupations in Corrections, Customs, Fisheries and two in Health (healthcare assistants and mental health assistants).

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.