Pay Equity For Healthcare Workers

Kia ora

With the pay equity settlement announced in October 2023, including pay increases for Te Whatu Ora Allied, Scientific, and Technical employees, PNZ thanks all members for their work to achieve pay equity and increased recognition of the essential role physiotherapists have in improving health for all of Aotearoa.

We have been aware for the last three or more years that the New Zealand Public Service Association Te Pūkenga Here Tikanga Mahi (PSA) and the Association of Professionals and Executive Employees (APEX) have been working on pay equity for the allied health roles.

Historically for physiotherapists in New Zealand, rates of pay have been benchmarked by the health sector workforce and followed by the private sector. PNZ is very aware of the impact this will have on private sector members, and have raised this with ACC both for Cost of Treatment Regulations and the Allied Health Contract.

In other areas where pay equity claims have been settled, such as for social workers, any Crown agency contracting services has immediately reflected the new rates in contracts. Having continued to challenge ACC on when they are going to act, we received the following responses on 31 October from their Deputy Chief Executive Tane Cassidy and 7 November in the ACC Allied Health Provider Update.

While this identifies that ACC recognises the pay equity settlement has significant impact on private practice, and that they are working with urgency, it does not yet answer questions of when the new rates will be in both Cost of Treatment Regulations and the Allied Health Contract.

This remains a central focus of our ongoing advocacy and as of December 2023 ACC have undertaken an analysis of the impact of the settlement, to be presented to their Board. Although ACC have not shared this analysis, the outcomes of the Board paper will be communicated by them before the end of the year.

ACC have also shared that pricing rates paid under Cost of Treatment Regulations are determined by a separate regulatory process decided by Cabinet, but that pay equity settlements will be an important input into the next biennial review of the rates in 2024. 

Thank you to all members for your support of this work.

Ngā mihi


ACC response: 31 October 2023

Tēnā koe Sandra,

Thank you for your letter dated 31 August 2023 regarding the pending Pay Equity Settlement for Allied Public Health, Scientific and Technical Workers.

Physiotherapy NZ is a valued partner of ACC, providing a breadth of services to our clients across the country every day.

We acknowledge the request in your letter for ACC to recognise and consider the costs incurred by rehabilitation providers’ services as a consequence of the impending Allied, Public Health, Scientific and Technical Workers pay settlement.

We’re working to evaluate our response to the pay equity settlement, addressing what it means for ACC and ensuring that we are fairly compensating our suppliers for the valuable work they provide. We recognise this will have significant impacts on the sector and are working with urgency, including on any approvals we may need to seek.

We understand communication and transparency is critical with changes of this significance. We want to assure all stakeholders that we will be proactive in addressing this.

We will provide a further update in the coming weeks, including what to expect next, and when. Thank you for your kind offer of support.

Ngā mihi,

Tane

Tane Cassidy

Deputy Chief Executive - Prevention & Partnerships, ACC


ACC response: 7 November 2023 (in the ACC Allied Health Provider Update)

The recent sector pay equity settlements signal an important milestone for our healthcare sector.

We need to evaluate our response to the PE settlements, addressing what it means for ACC and ensuring that we are fairly compensating our suppliers for the valuable work they provide. We recognise each settlement will have significant impacts on the sector and are working through our response with urgency.

Communication and transparency are critical with changes of this significance, and we want to assure all stakeholders that we will be proactive in addressing this. We plan to provide a further update in the coming weeks, including what to expect next, and when.


Page updated December 2023