The Court of Appeal dismissed an appeal by Terranova Homes and other aged-care providers, of an Employment Court judgement which found in favour of Riverleigh Resthome-Hospital senior caregiver Kristine Bartlett and the Service and Food Workers' Union, who claimed the low pay of female aged-care workers was discriminatory.
Chatsford and Birchleigh rest-homes chief executive and New Zealand Aged Care Association Otago, Southland board representative Malcolm Hendry said in one sense he was delighted there was recognition aged-care staff should be paid more.
''I solely agree with that. But the issue that follows on from that is, where is the funding going to come from to allow that to happen.
''It is an industry that relies on government funding to meet its costs, and wages would typically be at least half of the total cost of running an organisation like ours, and most aged-care facilities would be in a similar situation.''
The industry-wide pay rate for aged-care workers is about $15.50 per hour, give or take about $1, at present.
However, Mr Hendry said if employers were forced to meet a significantly higher wage cost, such as the potential $18.50 or more per hour being predicted, it would have a significant impact on industry wage bills.
''The concern from the Aged Care Association's point of view, when this situation was developing last year, was that this has the potential to cripple the industry.
''But it is not only that. If you increase their wages by $2-$3 per hour, there are all sorts of relativities that have to be taken into account around other staff who are also on the organisation's payroll, who would normally expect to be paid relatively to the caregivers.
''So the flow-on effects of this are huge.''
He said aged-care facilities were basically ''price takers'' and the Government dictated what facilities were allowed to charge per day for the care provided.
''We have to live within that.''
Ms Bartlett was ecstatic about the decision.
''I am nearing the end of my working life but am pleased that the Court of Appeal has confirmed what I always thought - caregiving is not recognised or paid fairly because most caregivers are women.
''I took this case, with the support of my union, not just for myself but for the tens of thousands of caregivers who get paid close to the minimum wage for doing one of the most important jobs in our society.''
Ms Bartlett urged aged-care employers and the Government to abandon any further appeals in favour of getting around the table with unions to sort out a just solution.
Service and Food Workers' Union national secretary John Ryall said the Court of Appeal decision came 42 years after the passing of the Equal Pay Act, and once implemented would substantially narrow the gap between the wages of men and women in New Zealand.
Public Service Association (PSA) and New Zealand Nurses Organisation (NZNO) also welcomed the decision.
Health Minister Jonathan Coleman said the Government was taking advice following the judgement.
Despite tight financial times, which had seen many countries freeze or reduce funding for health services, the Government had increased funding to aged residential care by more than $240 million, he said.
''DHB expenditure on aged care is forecast to be over $1.58 billion in 2014-15, an increase of more than a quarter on the $1.235 billion spent under Labour in 2008-09.
''As you will be aware, we recently increased the rest-home bed subsidy by $10 million a year for four years.
''This equates to a 5% increase. While it will be up to providers to decide how this extra money is spent, I expect many will choose to use it to increase staff wages.''
Dr Coleman said because the legal process was ongoing, it would be inappropriate to comment further at this stage.
