Service Worker’s Action Disappointing

WEDNESDAY 16 May

Service Worker’s Action Disappointing

District Health Boards say the Service Worker’s Union shouldn’t shut the door on what is a significant first pay offer to members.

Boards’ spokesperson Craig Climo, CEO of South Canterbury DHB, says talks had been progressing well and were set to continue tomorrow and Friday.

“Normally strike notice is given when negotiations breakdown – not when you’ve just started talking about money – these notices are disappointing given the progress we’ve made so far.

“Our first offer contains a range of pay increases ranging up to 24% over three years with the biggest increases for those on the lowest rates.”

Mr Climo says there are three parts to the deal outlined by DHBs:
 Pay increases between 8% and 24% weighted towards the lowest paid
 A national MECA covering all DHBs
 A mechanism to give the same levels of increases to staff of DHB contractors

“We tabled our first offer to the union on Sunday so the union would have time to report back to its members. The union knew we were still finalising numbers and the offer being outlined tomorrow will be bigger.

“DHBs appreciate the financial pressures on Service Workers,” says Mr Climo, “and our pay offer is well above the average rate of settlements in the heath sector at the moment.”

“We’ll be meeting with a mediator over the next two days (Thursday & Friday) trying to find a settlement – I hope the union comes to the table with an open mind.”

SFWU Negotiations Information Sheet
DHBs directly employ about 1760 people in service workers roles. The mix of roles varies greatly from DHB to DHB and includes attendants, orderlies, dispatchers, domestics and kitchen assistants.

Slightly above half of all service workers are employed in three of the largest DHBs – Auckland, Canterbury and Waikato.

The workforce is predominantly part-time and the number of FTEs (full time equivalent positions) is approximately 1130 across 17 DHBs. Tairawhiti, MidCentral, West Coast and Southland are all outsourced and have no in-house roles.

These figures do not include the people employed by private contractors.
Current Pay Rates
The all inclusive pay rate for service workers employed in DHBs – the average in the 12 months to April 2006 was $15.35.
 The rates paid by individual DHBs varies around the country and are based on the rates paid in their local area for similar work
 The base rate also varies – the average is $13.37 but that is only the base
 Service Workers in DHBs get penal rates and allowances on top of their base pay rate which takes it up to an average of $15.35 per hour – the average rises to $15.95 if overtime is included
 The minimum wage rose from $10.25 to $11.25 on 1 April 2007
 $15.35 per hour is 36% more than the new minimum wage – any increase as part of these negotiations would increase this percentage differential
The DHB Offer
 Pay increases up to 24% for at the lowest paid
 A mechanism to give workers of DHB contractors the same increases
 An agreement for a national MECA covering all DHBs

Current
Average Ordinary Rate Current
Average All Inclusive Rate New
Average Ordinary Rate New Average All Inclusive Rate
DHB's $13.37 $15.95 $14.54 $17.38
Contractors $12.93 $14.88
Sector average $13.13 $15.11
Contractors have yet to table an offer - given the commitment to "comparable pay" we would expect similar sort of movement.
Percentage Increases: 3 years from July 2007
% pay increase % of Staff covered
Over 20% 9.3%
15% - 20% 5.7%
10% - 15% 24.4%
8% - 10% 24.0%
Less than 8% 36.7%

ENDS

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