Month: June 2022

Renewed settlement for care and support workers still leaves sector in crisis, unions say

Unions representing thousands of care and support workers across Aotearoa New Zealand say the renewed care and support legislation that sets workers’ pay rates will leave workers and the sector in crisis for longer.

The legislation to amend the Support Workers (Pay Equity) Settlements Act 2017, which will update pay rates, is expected to pass on Wednesday.

However, unions say members are severely disappointed at the pay increase the Government has decided on – a “measly” three percent, far below the cost-of-living pressures workers are facing.

When the current Act expires on 1 July, unions will raise a pay equity claim to further increase the pay rates for support workers, but this process is expected to take 18 months.

Unions say they are equally disappointed the Ministry of Health did not share the content of the amendment bill or the new rates before the cut-off date of 21 June, despite ongoing negotiations for more than a year.

E tū Director Kirsty McCully says the current interim pay increase leaves support workers still struggling to survive in the meantime.

“With inflation at 6.9 percent and skyrocketing energy and fuel bills, these frontline workers face another 18 months of misery and it means their pay essentially goes backwards.

“It’s good news we’ll now be able to take a pay equity claim which wasn’t possible under the previous legislation, but workers can’t wait that long for a decent pay rise.”

PSA National Secretary Kerry Davies says the low pay increase leaves the sector in crisis.

“We believe this will see workers having to fight for higher pay or leave the sector – when it is the Government that holds the purse strings,” she says.

“Workforce shortages are already leaving elderly, vulnerable, ill, disabled clients and people in the community who have mental health and addiction needs in the lurch.”

NZNO Kaiwhakahaere Kerri Nuku says unions will be lodging a pay equity claim on behalf of care and support workers as soon as possible after 1 July.

“We will fight to see this claim progressed as quickly as possible, as it is clearly the only pathway to achieving decent and respectful increases for the workforce.”

Note to editors: The 4.6 percent increase on pay rates quoted by Minister Little includes a 1.6 percent LCI adjustment, which was agreed in the 2017 Act. The amended bill only includes a pay rise of 3 percent.

ENDS

Kirsty McCully (E tū Director), 027 204 6354
Kerry Davies (PSA National Secretary), 027 430 6013

Rob Zorn (NZNO Communications Advisor), 027 431 2617

Manufacturing workers reject pay offer for strike to combat cost of living struggles

Workers at an Auckland lock manufacturing plant are walking off the job this week over a pay offer they say doesn’t go far enough to help members — some having to work regular overtime just to meet their daily expenses.

Around 50 E tū members from Assa Abloy are striking for 24 hours from Wednesday afternoon to secure a “decent” pay increase.

E tū delegate Ralph Greig, who works a night shift, says he estimates around 70 percent of other members on his shift regularly work 10 hours of overtime each week just to meet the cost of living.

“The general perception is that once you work 40 hours, you should be able to sustain yourself and lead a good life.

“But our members have to rely on overtime, which takes us away from our lives and family time, to make ends meet,” he says.

“It’s the only way that we can put food on the table, pay our rents — just working 40 hours is not enough.”

Assa Abloy has currently offered an increase which is not much higher than CPI, and members say it is simply not enough.

Ralph says members feel their pay claim is fair and now is time for better pay: “We are united in our stand because we feel the day-to-day pinch. The only way out is to minimise our hardships by fighting for decent pay.”

E tū organiser Eugene Setu says Assa Abloy members feel “left behind”.

“Given CPI, the increase in purchasing power for these members at the current pay offer is little more than 0.5 percent.

“They need a decent pay increase – so they can take home enough pay from a standard full-time week and be able to spend time with their families.”

Eugene says the strike is about workers taking a stand about their own value in the workplace.

“This is about workers taking ownership of their future through their collective action to create decent working lives.”

Assa Abloy members will be picketing outside their company premises at 6 Armstrong Road, Rosedale on Thursday 23 June from 6am to 2pm.

ENDS

For more information and comment:
Eugene Setu 027 541 3630

International Justice Day for Cleaners and Security: E tū highlights Fair Pay Agreements

Today is International Justice Day for Cleaners and Security – a day marked around the world by affiliates of UNI Global, the international union body for the service industries.

In Aotearoa New Zealand, E tū is celebrating our campaign to win Fair Pay Agreements for some of our lowest paid workers, including cleaners and security guards. The Fair Pay Agreements Bill is currently before Select Committee, and E tū members and supporters made over 1,000 written submissions in support of the bill.

While all submitters told their own story, some clear themes came through. Submitters were particularly concerned about low wages, the cost of living, health and safety, workplace stress, safe staffing levels, a lack of respect at work, hours of work, and the ‘race to the bottom’ which sees companies using low wages to stay competitive.

An E tū delegation also made an oral submission to the Select Committee on Monday. E tū member and security guard, Lavinia Kafoa, described why essential workers like her deserved better pay and conditions through Fair Pay Agreements.

“Security workers have been at the forefront of the COVID-19 pandemic response, enabling the public to stay safe,” Lavinia said.

“We ask that we are paid fairly for the important role that we play in society. We have been given the support of the public and been thanked for the work that we do, but unfortunately this does not pay the bills.

“I hope that Fair Pay Agreements give the opportunity to earn liveable incomes for security guards in Aotearoa.”

E tū Assistant National Secretary, Annie Newman, says the whole world is watching.

“We are proud to have the support of UNI Global and other international union bodies as we work to win great Fair Pay Agreement legislation,” Annie says.

Just last week, the ILO gave Fair Pay Agreements a big green light, dismissing a vexatious complaint from a New Zealand business representative. The international employment relations community recognises the importance of sectoral bargaining, and we are thrilled that it will finally return to Aotearoa.”

ENDS

For more information and comment:
Annie Newman, 027 204 6340

Fair Pay Agreements win big at the ILO

E tū is celebrating the conclusion reached by the Committee on the Application of Standards at the International Labour Conference, after a tenuous case against Fair Pay Agreements raised by Business New Zealand has been effectively dismissed.

BusinessNZ took the complaint to the International Labour Organisation (ILO), claiming that Fair Pay Agreements would undermine ILO Convention 98, which protects the right to organise and bargain collectively.

Instead of agreeing with BusinessNZ’s position, the Committee simply asked the Government to keep working with the social partners while developing the legislation, essentially giving Fair Pay Agreements the ILO seal of approval.

Of particular note was representatives from across the world standing up to commend Fair Pay Agreements and condemn BusinessNZ for wasting the ILO’s time. President of the Australian Council of Trade Unions, Michele O’Neil, explained how inappropriate the case was.

“In New Zealand’s case, employers will only have to bargain in good faith and agreements will be struck. Arbitration only kicks in to ensure vulnerable workers are protected. Which makes it all the more shocking that what appears to be a blatantly political and without merit case has been presented to this Committee. When this Committee has such a competing list of extreme cases of standards being breached in many cases with life and death consequences,” Michele told the Conference.

E tū Assistant National Secretary, Annie Newman, says she is pleased by the conclusion, but isn’t surprised.

“It was always clear that BusinessNZ’s case wasn’t going to get anywhere, as sectoral bargaining is a common feature in workplace relations systems across the world,” Annie says.

“Fair Pay Agreements will allow some of our most vulnerable workers to have a real opportunity to improve pay and conditions that have been kept so low for so long. Of course, the ILO is going to see the merits in that.”

Annie says it’s time for BusinessNZ to apologise for their actions and to start engaging with Fair Pay Agreements in good faith.

“This frivolous complaint has been a key focus of BusinessNZ’s campaign to misinform people about Fair Pay Agreements. Just a few weeks ago, they published an edited version of a UN document to imply that their complaint had put New Zealand on a “worst case breaches” list – an utter misrepresentation.

“BusinessNZ leaders owe Kiwis and the ILO an apology for this embarrassing stunt.”

E tū members and supporters have made over 1,000 written submissions on the Fair Pay Agreements Bill, explaining exactly why this new mechanism is needed. An E tū delegation will be making their oral submission to the Select Committee on Monday afternoon in Auckland.

ENDS

Photo attached: E tū members celebrating the First Reading of the Fair Pay Agreements Bill

For more information and comment:
Annie Newman, 0272046340

E tū oral submission on the Fair Pay Agreements Bill
Monday 13 June, 1:00pm – 1:15pm
Hunterville Room, Ellerslie Event Centre, Auckland Race Course
Please contact Sarah Thompson for more details: 027 591 0024

Manufacturing workers strike as say they can’t wait longer for Living Wage

Up to 100 E tū members at a major transformer manufacturing plant in Auckland are striking and picketing on Friday in an effort to secure a Living Wage for the majority of its members as soon as possible.

Members working at ETEL Transformers say they want the company to increase the base rate for fully trained workers to at least the 2022/23 Living Wage rate from June.

The company wants to wait until December, but members say they can’t hold out any longer.

ETEL E tū delegate Viane Muliaga says members say they need at least the 2022/23 Living Wage now to cope with the huge rises in the cost of living, as many are struggling and some even working second jobs.

“Our members are telling us they need it now, not in December, as the company has offered.

“Many say they are struggling to survive on what they earn – especially with kids, rent or a mortgage, food, and not to mention petrol,” he says.

Viane says low current and past wages for the majority of members has also led to a high turnover of staff.

“It’s very physical work as well, so people leave to get easier, better-paid jobs elsewhere – we want to hold onto the workers we have.”

Another delegate Malu Schaaf says members simply can’t wait any longer for better pay: “They have told us that they need it now – not in six months.”

E tū organiser Jen Natoli says many workers, who have been underpaid for decades, are now pushing for more that they may have in the past, given the huge jumps in their own bottom lines.

“Wages haven’t kept pace for workers, and manufacturing companies are now having to consider what a Living Wage means to their workers when CPI is so high.”

She says historically low-paid workers finally asserting themselves in the fight for better pay is a trend likely to continue.

“While employers might be looking to get away with pay increases of around 6%, what we are seeing now is members who won’t settle for anything less than 8% to 10% – even up to 15% – after several decades of having just the minimum. 

“Because of low pay increases and an increasing Minimum Wage, manufacturing workers have found they no longer earn the margins they used to for their skills and experience – an industry once known for its well-paid jobs.

“When you’re paying high amounts for basic necessities, when you can’t make your rent, those wins become urgent.”

ETEL members are striking and picketing outside ETEL premises at 550 Rosebank Rd, Avondale, Auckland on Friday 10 June from 6.30am to 1pm.

Members have also put a ban on overtime hours from Wednesday 8 June to Monday 13 June.

ENDS

For more information and comment:
Jen Natoli, 027 591 0041

Ministry pay decision a “big setback” for care and support workers

Care and support workers are “gutted and disappointed” after a Ministry of Health recommendation that will not see workers get a pay rise of more than 70 cents an hour for at least a year.

In May, workers rallied around the country and presented a petition with more than 10,000 signatures calling on the Government for a bigger pay rise as part of the renewal of the Care and Support Workers (Pay Equity) Settlement Act to combat worker shortages and financial hardship.

While workers are relieved that the Ministry has recommended Government extend the settlement, which sets their pay and conditions, and remove the current ban on pay equity claims, workers, their employers, and unions say a 70 cent or 2.8 percent increase on all existing wage rates will only exacerbate existing worker shortages.

Union delegate Pania Love says the pay decision is “gut wrenching” and puts huge pressure on those who choose to stay in the care and support sector.

“It feels like the work I do supporting people with disabilities and my level of skill has not been acknowledged.

“We are already understaffed and overworked. Due to work and pay rates, many staff new to the disability sector do not stay long enough to build skills to provide the level of quality care required with empathy and compassion.”

Pania says this puts huge pressure on the few trained, experienced staff who are left working “huge hours and feeling burnt out”.

“While our work remains undervalued and underpaid, we will struggle to attract new workers to provide quality services to the people we support.”

Union delegate Ginny Sarich says the decision is a “big setback” for care and support workers and the whole sector.

“It will be an additional challenge for the people in our care, as they may lose the support workers that they’ve worked with for a long time to better, higher-paid jobs.

“It’s a very disappointing outcome, but we will keep pushing for justice, because ultimately, the conditions for workers are also the conditions for those receiving care.”

PSA Assistant Secretary Melissa Woolley says the Ministry’s recommendation is disappointing to workers across the care and support sectors.

“The original settlement was historic as it started to value the work of these workers. With inflation sitting at 6.9 percent, the increase the Ministry of Health has recommended to workers will leave them still struggling to provide for themselves and their whānau.”

Melissa says unions will raise a pay equity claim on 1 July to ensure workers truly get the pay equity they deserve.

“But that process will take time to reach an outcome, and in the meantime, workers will struggle to live on low wages.”

E tū Director Kirsty McCully says the decision not to raise wages for at least the next 18 months while a pay equity claim is processed will drive workers out of the sector – at a time when providers struggle to recruit them in the first place.

“We know there are already service shortages, and these will only increase as workers tell us they are leaving the sector to get better-paid jobs in work that’s less dangerous and difficult.”

Kirsty says not only is the care and support workforce losing its most skilled and experienced workers, but it’s also very difficult to attract new workers to the sector because of the low pay and inherently challenging nature of the work.

“The conditions for our workers also affect the thousands of people needing care in the community that they support.

“This isn’t just for workers, but for all who require care to live full and independent lives.”

ENDS

For more information and comment:
Kirsty McCully (E tū Director), 027 204 6354
Kerry Davies (PSA National Secretary) 0274 306 013
Rob Zorn (NZNO Communications Advisor), 027 431 2617