Unions, DHB back positive pay deal

A two per cent pay rise for health workers is being welcomed by unions and the Taranaki District Health Board.

The pay increase will affect 75 per cent of DHB employees around the country and will cost the Taranaki DHB about $1.8 million over three years.

When the board met in Stratford on Thursday, chief executive Tony Foulkes said the agreement between unions and the country's 21 DHBs was a positive development made under difficult conditions.

"This will enable us to focus our energy on working together to improve services and meet other challenges," he said.

Unions also saw the signing of the National Terms of Agreement as an opportunity to move forward.

"A 2 per cent pay rise across the board in the current economic climate is a major achievement," Public Service Association national secretary Richard Wagstaff said.

"The leadership demonstrated shows that collaborative problem solving can deliver real results."

Members of the New Zealand Nurses Organisation had chosen to defer their pay rise for nine months after the agreement came into effect, NZNO industrial adviser Glenda Alexander said.

"Our members have acknowledged how hard things are," she said.

"They have made a responsible decision and are looking forward to working constructively with DHBs."

The Service and Food Workers Union, which represents orderlies, food service workers, cleaners, security guards and home support workers, voted for the deal to give its members some stability, national secretary John Ryall said.

"We are confident that with this settlement health workers will be fully involved in the change process," he said.

However, at the Taranaki DHB's meeting this week, member Grant Knuckey asked where the money would come from, given Health Minister Tony Ryall's tough stance on spending.

"If there is no more money coming, how will staff be paid another 2 per cent?" Mr Knuckey asked.

Mr Foulkes said some additional funding was expected in the next financial year and the implications of the pay rise had been factored into the next budget.

"Any extra funding will not be as great as our increasing costs but we will be reviewing how we are providing services," he said.

It was widely known that continuing to do things the way they had always been done was not sustainable in the current economic climate, Mr Foulkes said.

- © Fairfax NZ News