Posted on: Sep 15, 2011

12 September 2011, Tony Ryall

The Government will contribute $90m towards phasing in the minimum wage for disability support workers on overnight sleepover shifts.

Health Minister Tony Ryall says: “Cabinet this morning agreed to provide $90 million towards phasing in minimum wage rates by July 2013, and $27.5 million towards the back pay liabilities of the providers.”  IHC and other providers are also putting in money.  “People with disabilities and their families can be assured that providing quality support remains a priority for this Government,” says Mr Ryall.

The Health Minister says the sleepover agreement is a fair one.  The employers, the union and the Crown have agreed to seek to discontinue litigation currently in front of the Supreme Court.  The Government will also introduce legislation to Parliament before it rises to secure the agreement.

The Agreement:

The Government will fund employers to pay 50% of the current minimum hourly wage to workers for sleepovers from 1 July 2011, and then 75% from 1 July 2012, then 100% from 1 July 2013.

The Government will also contribute $27.5m for back pay which will be paid at 50% of the appropriate minimum wage for the period 1 July 2005–30 June 2011 to past and present employees in respect of all claims lodged to 2 September 2011.

Source: www.beehive.govt.nz



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