Doctors' pay rises to cost board $1.8m

Ian Powell
Ian Powell
Extra pay for senior doctors agreed this week is expected to cost the Southern District Health Board $1.8 million over a year.

This week, the national executive of the Association of Salaried Medical Specialists ratified the settlement of the national district health boards' multi-employer collective agreement (MECA) after a ballot of members.

In a newsletter to association members, executive director Ian Powell said 93% of those who responded to the ballot favoured accepting the boards' offer, which will apply to about 3700 doctors.

The overall response rate to the ballot was 63%, although in some boards it was as high as 81%.

The association considered this result was a sufficient mandate to ratify the agreement. The increases range from 2.8% to 12.4%, but the average was 3% to 3.3%.

The larger increases for some doctors are due to the removal of the bottom three steps of the salary scales.

The top rate on the specialist scale will become $206,000, and on the medical and dental officers' scale the top rate will be $162,250.

Mr Powell said in many respects this settlement, which will come into force on January 1, should be seen as a "holding pattern", as negotiations are expected to resume towards the end of next year.

The spokesman for the 20 district health boards, Graham Dyer, asked about the size of the increase compared with lower percentages received by more low-paid health employees, did not wish to make comparisons, but said the senior doctors' agreement was recognition "that there have been some challenges with this group".

"Where we've got to is, I think, probably a fair and reasonable end point."

The cost of the agreement across the country would be significantly lower than the $360 million originally sought, he said. He considered the settlement set a "platform" for positive relationships between the two groups on ongoing issues.

Southern District Health Board finance and funding general manager Robert Mackway-Jones said the settlement was within the amount boards considered they could pay.

In its annual plan, the board points out wage growth and contractural price increases need to be managed within the 1.72% inflation component of the Government funding package.

For every 1% above this, costs would increase by about $3 million.

Mr Mackway-Jones said in the case of the senior doctors, the costs would be spread across two financial years.

All senior medical officers employed by the board were on the salary scale, so the increase applied to them all.

However, some doctors receive more than the straight salary amounts.

Mr Mackway-Jones said some doctors had other allowance arrangements outside of the salary scale steps as part of their agreed overall remuneration package.

• Personnel costs for all staff at the DHB are expected to total $307.5 million this financial year.

elspeth.mclean@ odt.co.nz

 

 

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