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Pay equity for vocational and disability care and support workers

The MSD/MVCOT Settlement aligns the pay rates of disability care and support workers with the pay rates of workers carrying out similar work and covered by the TerraNova Settlement.

The disability care and support workers covered by this agreement provide personal care and support including help to wash, dress and eat, help with the laundry, housework and shopping, or help getting to appointments.

The Ministries want to achieve a better paid, more stable and highly trained workforce, resulting in higher quality and more consistent care for clients.

The Ministries will fund employers for the pay increases through their contracts and will also help fund and require employers to provide training.

Pay equity for vocational and disability workers fact sheet

Estimator Tool

This tool is for providers of care & support services to download for the purpose of establishing an estimate for invoice purposes. Please refer to the Estimation Process Guidelines when using this tool.

Estimation Process Guidelines

This document should be referred to when completing the estimation process and Estimator Tool.

Background

The Ministry of Social Development (MSD) and the Ministry for Vulnerable Children Oranga Tamariki (MVCOT) have reached a landmark agreement with unions to fund significant pay increases and more training for about 1700 vocational and disability care and support workers.

The MSD/MVCOT Settlement addresses historical pay equity disparities in line with what was recently achieved for care and support workers in the TerraNova agreement.

In April 2017 Government settled the TerraNova pay equity claim. The $2.048 billion agreement led to a change in wage relativities to be phased in over five years.

The agreement was the result of a case that successfully argued a caregiver’s pay is less than would be paid to a male with the same skill set in a different occupation, because caregivers are predominantly female.

This latest agreement will affect contracts for around 300 services accessed by about 24,500 people and children with disabilities, at a projected cost of $55.8 million over five years.

Wage rates for disability care and support workers will increase in each of the next five years, based on qualifications for new staff and transition arrangements for existing staff who don’t have qualifications.

The Ministries have been working with E tū Union and the Public Service Association to deliver on a commitment that their contracted disability care and support workforce would be covered by terms consistent with the Terranova Agreement if the unions agreed to forgo back claims.

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