Major Instability: Risk Of Service Disruption For Health Sector

Government changes to Equal Pay Act will result in
instability and risk service disruption for home and
community services.

The Home and Community Health
Association has expressed serious concern at the urgent
amendments made by the government to the Equal Pay Act
yesterday. These changes threaten to undermine all the
progress made towards achieving fair pay for essential
workers in home and community support services, and wider
health sector, particularly with an ageing population
increasingly reliant on home care.

The amendments halt
all ongoing pay equity claims and stop future settlements
aimed at ensuring fair compensation for those providing
vital home care services.

This raises a critical
question: what now?

“Home care is a vital yet often
invisible part of our health system, providing over 27
million hours of support each year. Care and support workers
must not be forgotten. We urgently need clarity from funders
on their proposals to ensure these essential workers are
paid fairly. The changes create harmful uncertainty and
instability for employers and workers in home and community
support,” said Lisa Foster, Kaiwhakahaere of the Home and
Community Health Association (HCHA).

“We are deeply
concerned about the impact on the 110,000 people who rely on
home care. This essential workforce must be valued and shown
that they matter. The current message is quite the
opposite.”

Many essential home services rely on fully
funded contracts, but funding has eroded over time and pay
rates have been diminishing. Disparities within the health
sector funding (ACC, Health NZ, DSS) make this even more
challenging. The sector is calling for Te Whatu Ora | Health
New Zealand to urgently share their proposals to address
these sustainability issues that threaten health
services.

The pay equity process with unions and
employers has identified undervaluation and discrimination,
which must be addressed. The Home and Community
Health Association will urgently seek further
clarity from the government on what is now proposed for a
pragmatic sector solution.

“The real issues of low pay
rates and underfunding need resolution. The significant pay
gap for Care and Support Workers cannot be ignored. This
issue cannot be left without a clear plan and pathway
forward,” said Lisa Foster, Kaiwhakahaere of the Home and
Community Health Association (HCHA).

“Gender
discrimination and much higher pay rates for hospital staff
(paid by Health NZ) compared to community workers must be
addressed. A re-balance is urgently needed. Support workers
deserve fair compensation based on their job, not their
workplace – whether in the community or a
hospital.”

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