Rest home's way around equal pay

Tuesday, 26 September 2017

Plans to restructure jobs at a Blenheim rest home months after a historic equal pay settlement has care workers 'angry and upset'.

Aberleigh Rest Home announced its restructure plans in a letter to staff last month suggesting care workers might have to reapply for their jobs, but with fewer positions under the proposal some would become 'home assistants'.

Industry union E Tū described the restructure as a deliberate attempt to avoid paying care workers under the pay equity settlement, an agreement to lift the minimum wage for aged-care workers from $15.75 to $19. Experienced carers would earn up to $23.50 an hour.

The hourly rate for home assistants would be between $16 and 17 per hour, as they did not provide personal care for residents, but performed other tasks, such as serving food, cleaning and laundry.

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The letter sent to staff said the proposal was the result of 'concerns we have regarding the financial implications of the Equal Pay Settlement on the financial viability of Aberleigh Rest Home'.

'We would like to acknowledge that these proposed changes may seem a departure from the philosophy of care we have worked for so long to develop … however, our preliminary view is that we cannot see a way forward without some changes taking place.'

Requests for comment from Aberleigh Rest Home were pushed up the line to the NZ Aged Care Association, a lobby group representing the industry.

Association chief executive Simon Wallace has spoken out about challenges faced by smaller rest homes since the settlement came into effect in July.

Rest homes across the country were considering cutting staff, he said.

'That's exactly what Aberleigh Rest Home is doing. And they've done it in consultation with Dementia Care New Zealand and the union. It's not what they want to do, it's what they have to do.'

The settlement was not fully funded as the ministry claimed, Wallace said.

'We certainly don't condone rest homes downgrading roles to avoid obligations under the equal pay settlement.

'But because it hasn't been fully-funded by the Government, in order to stay operating and continue to provide a service to the community, rest homes have to review their operations to avoid closing down.'

The same restructure was proposed at Tasman Rest Home, in Nelson, last month.

E Tū assistant national secretary John Ryall said the Ministry of Health assured the sector the settlement would be fully funded when the deal was announced in April.

'If it's not, then the Government must provide the funding to ensure care workers don't pay the price of any shortfall.'

Ministry of Health director of service commissioning Jill Lane said the pay equity settlement was fully-funded.

Aged-care providers were given an advance payment to fund the pay increase for three months from July 1.

It would also provide funding in advance to offset costs related to the settlement, including cover for statutory holidays, sick leave, time-and-a-half on public holidays, ACC levies and Kiwisaver costs.

'Providers will be expected to manage wider wage pressures through the usual contract negotiation processes,' Lane said.

'District health boards as funders are the first point of contact for providers when sustainability issues arise. DHBs will already have processes in place for dealing with sustainability issues.'

An Aberleigh Rest Home carer said she was 'angry and upset' about the proposed restructure.

'We finally got the equal pay settlement and then this, soon we might actually earn less. People were crying when they found out.

'Everyone feels devalued by this, and stressed. For people like me, that's my only income.'

She spoke anonymously because she had been told not to speak to the media.

'I don't like the fact the families [of rest home residents] do not know. I believe having less care workers would put the residents in danger. If it goes ahead, they'll have nice clean houses but the quality of care will go down.

'If there's less carers there will be more injuries. It's so easy for them to twist their ankle or fall or hurt themselves.'

She would still reapply for her position, even if it meant becoming a home assistant and taking a pay cut, she said.

'I don't agree with what they're doing but I want to be there in case it goes ahead. These residents really depend on us, especially the ones with dementia. If they start losing all the good carers, and bringing in people who are not as qualified, I couldn't just walk out of there.'

Ryall was also worried that care standards would fall, he said.

'Aberleigh provides dementia care so skilled staff are absolutely essential,' he said.

'That's unfair on our members who do this work, but also the families of residents who trust these facilities to provide quality care.'

If the union found employers were breaching the Equal Pay Act it would take legal action, Ryall said.

'We will oppose any change to job titles which contravenes the act.'

Wallace said the association was in contact with district health boards to make sure rest homes were getting support.

'Rest homes are able to talk with the health board. But some may not want to because they're afraid if they reveal they are financially unstable, they may receive less referrals from the board. 

'We're doing what we can as an association for our members. We've always supported caregivers being paid more, but this is one of the downsides.'

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