“This is a huge step forward for low paid workers in New Zealand – whether they’re men or women,” says Erin Polaczuk, National Secretary of the New Zealand Public Service Association (NZPSA), a PSI affiliate.
This deal will lead to significant pay increases from July for workers in aged residential care, home support, and disability services, all state-funded service sectors with low pay rates and predominantly female employees. This settlement will benefit 55,000 workers that will receive a pay rise between $4 - $7 an hour.
The pay increase will cost the Government more than $2 billion over the next four years. For the workers, it won't be backdated but will take immediate effect on 1st July.
The settlement comes after a pay equity claim brought by E Tu (previously the Service and Food Workers Union) on behalf of care worker Kristine Bartlett against her employer TerraNova.
This deal is expected to have a flow-on effect to other industries, and the Government hoped it would encourage businesses to make greater moves in addressing the overall gender pay gap in New Zealand.