The police pay stalemate, explained
Monday, 22 April 2024
The police and Government have declared a stalemate, after more than a year of pay negotiations. Glenn McConnell explains what that means.
After failing to reach an agreement, a third party mediator will be called in to settle negotiations about police pay.
The arbitration process is a last-ditch, all-or-nothing, winner takes all decision that will ultimately pick either the Government or Police Association’s offer.
It removes the need for negotiation and voting, giving all the power to one arbitrator who must now choose the Government’s pay offer or the Police Association’s proposal. Their decision is final.
Experienced employment lawyer and Employment Relations Authority member Vicki Campbell has been selected as the all powerful arbitrator, following a meeting on Friday between the association and police department.
So how will the arbitrator make their decision?
The “Final Offer Arbitration” process is set out in the Policing Act. It’s a unique last-port of-call system to stop police from taking industrial action or striking, which they are legally prohibited from doing.
There’s a few steps to go through, but the process is designed to be relatively quick and clear - after months (or in this case about a year) of negotiations have failed.
Both the Government and police association will both present final offers to the arbitrator, setting out what they think a good deal would be for police officers.
Each party has a chance to respond to the other’s offer and there will be a hearing to debate the offers.
In deciding which offer to pick, the Policing Act says the arbitrator should make a decision based on these issues:
The recruitment and retention of constables.
“The need for fairness and equity in the rate of pay and conditions of employment.”
Whether the proposals include changes in duties or required skills, and whether there has been any increased productivity.
Are the proposed agreements pace with pay rises seen in other sectors?
The unique conditions and requirements placed on police.
Does either side have an edge?
The last time an arbitrator was called in to settle police pay negotiations, back in 2021, the unique danger and requirements placed on constables garnered significant support for their cause.
The arbitrator sided with the Police Association and used the Policing Act’s requirement for them to consider the unique position of police in coming to a conclusion.
“It is difficult to identify any other public (or private) sector group that is faced with a comparable work environment that can result in abuse, assault or serious injury or even potential death, being present on a regular basis and incurred purely in the course of carrying out an essential public service,” the 2021 arbitrator, Ken Anderson, said.
Concerns about attrition, resulting from Australia’s recruitment campaign targeting Kiwi cops, could also bolster the association’s argument for a better deal.
In 2021, there was a 1.5% difference between what the Government was offering (2% pay rises) and police were asking for (3.5%).
This year, the Government’s refusal to backdate the agreement to when negotiations started has been a major point of contention.
But the Government has moved to reach consensus.
Police Minister Mark Mitchell said the Government had added an extra $250 million to the total package in its most recent offer, which was strongly rejected. Just 25% of officers voted to accept the Government’s final offer.
Prime Minister Christopher Luxon said it was “disappointing” police rejected the offer, as there had been extra spent on allowances such as overtime payments.
“When you look out at the next three years, actually they were good increases above the level of inflation. So it's disappointing for us given I think we felt we put our best foot forward” he said.
The Government offered a one-off $1500 payment, and 4% pay rises year-on-year.
There was no definite time line set for when the arbitration process would conclude.