NZNO Calculations Incorrect On Aged Care Wage Rise

MEDIA RELEASE

2 May 2007

NZNO Calculations Incorrect On Aged Care Wage Rises

Everybody wants to see caregiver wages rise, but the NZNO ‘future’ wage assumptions, based on yesterday’s budget announcement are incorrect.

NZNO believe the funding increase to DHBs of $37.5 million each year for four years) means a 6-7% increase in wages each and every year for the next four years resulting in a wage of $14.40 by 2010.

“These calculations are incorrect as the funding announced yesterday only allows an increase in year one which can then be maintained for four years. Therefore, apart from inflation, there is no additional funding for increases in year 2, 3, and 4”.

This means a wage rate of $11.25 per hour in 2007, may increase by 6% to $11.92, which will still be below the minimum wage in April 2008, when it rises to $12 per hour.

Mr. Taylor said, ”The NZNO also needs to be aware the funding increase announced yesterday is for DHBs. The amount that will be passed onto providers is subject to negotiation, and those negotiations take into account all of providers cost not just wage costs.”

“Furthermore, some of what has been announced today will have to go into compensating providers for this last year’s minimum wage increase ($12 million), the impact of the Holiday’s Act fourth week of annual leave ($8.8 million), and the pressure that has been put on nurse wages from the DHB and NZNO nurse MECA ($63.3 million),” said Mr. Taylor

ENDS

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