Mitchell MarkCARE AND SUPPORT WORKERS (PAY EQUITY) SETTLEMENT BILLThird ReadingHon MARK MITCHELL (Minister of Defence) on behalf of the Minister of Health: I move That the Care and Support Workers (Pay Equity) Settlement Bill be now read a third time. Thank you to everyone involved in the consideration of this bill. A large number of people have worked very hard in a short period to make sure this legislation could make its way through the House and that it does what was agreed. Before that 20 months of negotiations culminated in the historic agreement that is implemented by this legislation. There is $2 billion over 5 years to increase wages for around 55000 hard-working predominantly female health workers who care for some of New Zealand's most vulnerable people. Let me thank again everyone involved in the negotiations: the unions—the Public Service Association the New Zealand Nurses Organisation and the New Zealand Council of Trade Unions; the employer associations—the Aged Care Association the Home and Community Health Association and the New Zealand Disability Support Network; the Crown negotiator; and the many officials who supported negotiations. I know I speak for all members of this House when I once again thank Kristine Bartlett.This negotiation means that from 1 July around 55000 care and support workers will receive pay rises of between 15 and 50 percent. For a full-time worker this means that they will be taking home at least $100 extra a week or more than $5000 a year. For the 20000 care and support workers currently on the minimum wage at $15.75 per hour it means that they will move to at least $19 per hour. That is a 21 percent pay rise. Because this industry has a large number of workers without formal qualifications but with lots of experience current workers will be moved to positions on the new pay scale that reflect that experience. For workers employed after 1 July the wages will be based on that worker's level of qualification.An important part of the settlement and legislation is that workers will be supported to gain higher qualifications. That provision for training is a vital part of this agreement and will over time lead to a workforce with much higher qualifications which is good for everyone. Questions were asked in the Health Committee about the training requirements so I would like to talk about them briefly. The legislation requires employers to take reasonably practical steps to ensure that a care and support worker is able to attain qualifications. What is reasonably practical depends on the circumstances and we expect there will be a flexible approach suited to the needs of the workers and the clients. This will include facilitating online and on-the-job training time off for training and examinations course fees and the like. In other words this workforce should have the same opportunities for up-skilling as other New Zealand workforces.The Crown is funding employers to the tune of 2 days per full-time equivalent employee as a contribution towards the additional costs. As well as working hard to get the settlement and legislation in place there is also a lot of hard work going on to make sure that everything will be ready for care and support workers to get the agreed wage increase from 1 July. The Ministry of Health and ACC have a lot of work under way to support funders and employers to implement the settlement and legislation. The ministry has held information sessions around New Zealand for employers. It has released guidance tools to help work out who should be paid what rate and to move workers to the new pay scale. It has set up an implementation helpdesk to help employers understand their obligations and to support them in making the necessary business arrangements to pay their staff the wages that they are entitled to.The ministry will be making advance payments to providers to ensure that they have the funds available to make the payments. Support for providers and employees is also available through district health boards; unions; other Government agencies like the Inland Revenue Department and the Ministry of Business Innovation and Employment; and the care and support industry's peak bodies.I acknowledge that employers have raised concerns about the amount of funding they will receive. These are perfectly legitimate issues to raise and the Government expects them to be addressed in contract negotiations which are ongoing. But we need to remember that the Crown has negotiated and funded a settlement that addresses a significant legal and financial risk faced by employers including the risk that the courts would have backdated pay equity increases to 2012.Most importantly we need to remember that this settlement means that some of the most dedicated and caring workers in this country will be paid fairly. Thank you.