A new multi-employer collective agreement (Meca) has been ratified that sets conditions for about 3500 Etu union service workers, including cleaners, laundry workers, orderlies, catering and security staff at the New Zealand’s 20 district health boards.
The increases will affect about 40 workers in Otago and Southland, and more when they flow through to workers contracted by companies like Compass, which provides food for the Southern District Health Board.
Invercargill Etu union delegate Karena Kelland, a kitchen assistant at Southland Hospital, said pay rates in the industry had always been low, and the new rates would make a big difference.
"We’ll have adequate pay, not just to cover living."
"It will make our whole environment better, less stressful.
"I won’t have to rob Peter to pay Paul; I will be able to start saving."
Etu national hospitals co-ordinator Sam Jones said by the end of the Meca term in 2021, new workers would start on $20.90 an hour, an increase of 26.7% .
The health boards had agreed to provide training for workers to gain qualifications with higher wage rates.
Etu hoped all members would gain a level 3 qualification, which would mean a pay rise from $17.28 to almost $25.00 by 2021, an increase of 40.9%.
"This is a fantastic outcome for members who have struggled with costs rising faster than their low wages," Mr Jones said.
"It’s a major investment by the DHBs and the Government in the lowest-paid workers in our public hospitals, and helps deliver on the Government’s promise to lift the living standard of those at the bottom."
"It’ll be easier for people to pay the bills and feed their families properly so they’re healthier and happier."
He said Etu was confident about finalising the same settlement with major health board contractors by the end of the year.
Mr Jones said about 2000 workers were employed directly by health boards, and the about-1500 others were employed by four major contractors.
"We tend to deliver the same settlement — most of that’s just being tidied up, and by and large the rates [for those employed by contractors] have been committed to."
That would include laundry workers, security workers and kitchen workers in the South.
There were smaller unions within the industry which would "ask for the same thing" now Etu had finished negotiations.
That meant the agreement actually sets the rates and conditions for about 4200 workers.
