Care and Support Worker Claim: Background information

Written By Emma Lubberink

Summary

Circular photo of person on a light blue background with the words background information

  • In July 2022, a Pay Equity Claim was filed by E tū, NZPSA, and NZNO against 15 employers representing the health and disability sector. CCS Disability Action is one of the named employers.

  • The claim aims for an efficient pay equity process and an agreement extendable to all care and support workers using a funded framework, known as a ‘representative claim’.

  • Four peak bodies (HCHA, NZACA, NZDSN, and Platform) represent some employers to consider sector-wide implications.

  • The 2022 Claim follows a 2017 pay equity settlement extended to the Mental Health and Addiction sector in 2018.

  • Following the 2017 settlement, care and support workers’ pay rates are legislated, and due to inflation, many have regressed to minimum wage.

  • The 2017 settlement was due to expire in 2022. Amendments were made to extend the legislation to the end of 2023, but to allow for a new pay equity claim to be raised after 30 June 2022. On 1 July 2022 the new claim was raised.

  • The 2017 legislation expired on 31 December 2023, creating uncertainty for 2024 pay rates.

  • Parties to the 2022 claim include unions, a list of employers, and funding agencies like Te Whatu Ora and Te Aka Whai Ora.

  • The Pay Equity Process involves establishing gender-based undervaluation, interviewing workers, building job profiles, and comparing them against male-dominated professions to assess undervaluation.

Background

In July 2022 a Pay Equity Claim for Care and Support Workers (‘the Claim’) was filed by three unions: E tū Incorporated (E tū), New Zealand Public Service Association Te Pūkenga Here Tikanga Mahi (NZPSA) Incorporated and NZNO Tōpōtanga Taphui Kaitiaki O Aoteroa (NZNO) against 15 named employers.

These employers were chosen as a representative group from the wider health and disability sector. The purpose of this approach was to enable the established pay equity process to proceed more efficiently. From the beginning, unions and employers aimed to form an agreement that could immediately be extended to all care and support workers outside of the named parties via a sector extension process. This is called a 'representative claim'.

Four peak bodies were invited to represent some of the 15 employers in the process and ensure sector-wide implications were considered in the Agreement. The peak bodies are Home and Community Health Association (HCHA), New Zealand Aged Care Association (NZACA), New Zealand Disability Support Network (NZDSN) and Platform.

The 2022 Claim followed a pay equity deal reached in 2017 between the Crown, Funders and union representatives. This applied to all care and support workers in the Aged Residential Care, Disability Support Sector and Home and Community Support Sector. In 2018 it was extended to the Mental Health and Addiction sector.

Unlike most workers, pay rates for care and support workers are mandated in legislation. Due to inflationary pressures and a rise in the cost of living, in real terms pay rates have now regressed back to minimum wage for many workers. This is why unions needed to file a new claim and introduce a maintenance mechanism to ensure care and support workers continue to receive pay equity.

The existing legislation relating to the earlier 2017 pay equity settlements expired on 31 December 2023. Despite indicating an intention to resolve the Claim, prior to the expiry the Government was unable to confirm funding to do so.

Parties to the 2022 claim

Three groups have worked together to form an Agreement on the Claim. These three groups are:

Unions

  • E tū Incorporated

  • New Zealand Public Service Association Te Pūkenga Here Tikanga Mahi Incorporated

  • NZNO Tōpūtanga Taphui Kaitiaki O Aotearoa (Employee Representatives)

Employers

  • BUPA

  • CCS Disability Action Incorporated (CCS Disability Action Northland Inc; CCS Disability Action Auckland Inc; CCS Disability Action Waikato Inc; CCS Disability Action Bay of Plenty Inc; CCS Disability Action Manawatu-Horowhenua Inc; CCS Disability Action Wairarapa Inc; CCS Disability Action North Taranaki Inc; CCS Disability Action South and Central Taranaki Inc; CCS Disability Action Tairawhiti Hawkes Bay Inc; CCS Disability Action Wellington Inc; CCS Disability Action Nelson Marlborough Inc; CCS Disability Action Canterbury and West Coast Inc; CCS Disability Action South Canterbury Inc; CCS Disability Action Waitaki Inc; CCS Disability Action Otago Inc; CCS Disability Action Southland Inc; CCS Disability Action Whanganui Inc)

  • Dunedin Community Care Trust

  • Emerge Aotearoa Limited

  • Geneva Healthcare Limited

  • Healthcare of NZ Limited

  • NZ Community Living Limited

  • Pacific Island Homecare Services Trust

  • Pathways Health Limited

  • Presbyterian Support Central

  • Spectrum Care Limited

  • Te Roopu Taurima O Manukau Trust

  • The Lifewise Trust

  • Toucan Taranaki 2004 Limited

  • VisionWest Community Trust (Employers)

Funding agencies

  • The Chief Executive of Te Whatu Ora (as funder of the Employers)

  • The Chief Executive of Te Aka Whai Ora (as funder of the Employers)

  • The Chief Executive of the Ministry of Social Development – Te Manatu Whakahiato ora (as a funder of Employers)

  • The Chief Executive of Oranga Tamariki - Ministry for Children (as a funder of Employers)

  • The Chief Executive of the Department of Corrections – Ara Poutama Aotearoa (as a funder of Employers)

  • The Chief Executive of Ministry of Education (as a funder of Employers)

  • The Chief Executive of Ministry of Housing and Urban Development – Te Tuapapa Kura Kainga (as a funder of Employers)

  • The Chief Executive of the Ministry of Disabled People - Whaikaha (as a funder of Employers)

  • Accident Compensation Corporation (as a funder of Employers)

The process

Pay equity claims are created through a rigorous process to systematically establish whether sex-based undervaluation exists for a profession and, if it does, how much that occupation has been undervalued compared with male-dominated occupations.

The Pay Equity Process is outlined in the Equal Pay Act and overseen by the Public Service Commission. It involves key milestones that are required to be signed off at each stage of the process. The process involved:

  1. Establishing that there were grounds to believe care and support workers were undervalued based on gender.

  2. Interviewing care and support workers about what they do and using that information to build a profile of their job.

  3. Assessing that profile using a pay equity tool that scores different aspects of the work – including the skills, experience, responsibility, and effort required.

  4. Assessing the care and support workers' job profile against comparators in male-dominated professions that require similar levels of skills, responsibilities, effort, and working conditions. 

  5. Comparing how these roles are valued differently, and determining how much care and support work has been undervalued.

What comes next?

Employers and unions will continue to work with urgency and determination to ensure a pay equity settlement as soon as possible for all care and support workers. CCS Disability Action is working hard to see a positive outcome for support workers.

Emma Lubberink
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Care and Support Worker Claim: Frequently asked questions