Compensation possible over Novopay: Key

John Key
John Key
Prime Minister John Key says compensation to schools to halt legal action over the Novopay system is a possibility, if the teacher unions would agree to a package.

The PPTA is considering legal action against the Education Secretary over the troubled school staffing pay system, and Mr Key said compensation to prevent that was possible if the PPTA agreed to a package. He did not know what talks the acting Education Secretary Peter Hughes had held with the sector over the issue.

I think there has been an attempt to compensate, or at least make whole, schools where there has been a cost. Some of these are subjective costs, so they are about a use of time where the argument is that a staff member has spent time resolving pay issues rather than something else and that's a more difficult thing to quantify.

He said he had not obtained any legal advice on a potential legal suit, but said the PPTA was free to take the Government to court.

However, the Government is working hard to try to resolve the issues with the system.

We acknowledge some schools actually, a lot of schools have had to spend more time than they otherwise would do resolving their pay issues and this has come at some inconvenience and potential cost to those schools.

He said the Government had already provided for schools to cover underpaid or unpaid staff and for those schools to be reimbursed by the Government.

- Claire Trevett of the New Zealand Herald

Who pays when Novopay doesn't?

"I think there has been an attempt to compensate, or at least make whole, schools where there has been a cost," writes Claire Trevett of the New Zealand Herald.  "John Key says compensation to schools to halt legal action over the Novopay system is a possibility."

It is not clear in the article where the money is coming from.  If from Novopay, compensating for egregious failure to deliver on time within coo-ee of acceptable standard, that's OK though in my opinion they should be handing back several thousand dollars at each tea-break till they complete the job to a professional standard. 

If however compensation is to come from the taxpayer that's a real slap in the face for us. We have already seen our hard-earned tossed gaily overseas to another company for a product worse than what NZers could have delivered.  Novopay's reputation  over this cannot have gone unnoticed around the world.  The government should get a refund and compensation before they fold their laptops and disappear into the dusk.

Extra time

"We acknowledge some schools ... have had to spend more time than they otherwise would do resolving their pay issues and this has come at some inconvenience and potential cost to those schools."

If it had not caused inconvenience i.e.  people working at Novopay issues far beyond the amount of time they had previously spent on school staff pay, it would indicate that they had previously been paid for hanging around doing nothing much.  I doubt if that is the case.  Therefore, whether they also worked extra hours or not, the school has been damaged because work that should have been done by these people was not done.

Instead they were trying to clean up Novopay's mess.

No compensation

The NZEI  will never agree to any form of compensation to schools, without a monetary payment to all teachers who have been disadvantaged or not. Schools do not form part of the NZEI members responsibility. The NZEI see schools and children  as a tool to be used as a bargaining platform.

ODT/directory - Local Businesses

CompanyLocationBusiness Type
Taieri Consultancy / Target Accounting DunedinAccountants
Everyday GourmetDunedinCafés
Central Gateway MotelCromwellMotels
Albatross InnDunedinHotels