Action comes after a year of bargaining with doctors without settlement
Health New Zealand is taking its stalled pay negotiations with the Association of Salaried Medical Specialists (ASMS) to the Employment Relations Authority, following the union's announcement of strike action later this month.
Richard Sullivan, Acting Chief Executive of Health NZ, said they are applying to the ERA to fix the terms and conditions of a collective agreement.
It comes after more than a year of bargaining with the ASMS, which includes 11 days of formal bargaining, a number of informal meetings, mediation, six days of facilitated bargaining, and an invitation to binding arbitration, according to Sullivan.
"Despite this effort, we have been unable to reach a settlement and we believe all bargaining options have been exhausted," the acting chief executive said in a statement.
"We believe the application for fixing is the best way forward to ensure certainty for New Zealanders."
Health NZ's offer includes a massive investment that would have cost taxpayers more than $160 million over a 16-month term for around 5,500 senior doctors.
This covers an increase to base pay and the application of a $40 million fund for senior doctors.
It adds to the $5,900 annual step increase senior doctors receive until they reach the top of the 15-step pay scale, according to Health NZ.
"We are disappointed ASMS has chosen not to progress bargaining on the basis of this improved package, which we consider to be a fair and reasonable way forward," Sullivan said.
'Unwarranted' step from Health NZ
Health NZ's announcement comes after the ASMS announced last week that it would strike on September 23 and 24 after rejecting the latest pay offer from Health NZ, saying it would deliver a pay cut for most members.
Sarah Dalton, ASMS executive director, told Radio New Zealand that taking matters to the ERA was "unwarranted."
"We don't think this is a situation that requires pay fixing," she said as quoted by the news outlet.
"What it requires is for Health NZ – and for the government that funds them – to recognise that senior doctors have been taking real pay cuts for several years now."
Massive disruption incoming
Health Minister Simeon Brown slammed on Thursday the ASMS for its decision to strike, citing massive disruption in the country's health care system.
Brown said senior doctors in New Zealand already receive an average total remuneration of $343,500, including overtime and allowances.
They also get benefits such as six weeks of annual leave, two weeks of paid training leave annually, a fully paid three-month sabbatical every six years, as well as reimbursement for licences, college memberships, and insurance.
"Senior doctors are among the most well-remunerated public servants, with many also working in private practice," Brown said in a statement.
"The ASMS union is putting politics ahead of patients, while Health New Zealand continues to engage in good faith."
According to the minister, the upcoming 48-hour strike will postpone care for more than 13,000 patients. This includes disruptions to:
- 1,800 elective procedures such as hips, knees, and cataracts
- 3,600 first specialist assessments
- 7,000 follow-up appointments
- 800 out-patient procedures
"The decision to strike follows the union's recent refusal to enter binding arbitration to resolve its ongoing dispute with Health New Zealand, despite more than a year of negotiations," Brown said.
"Let's be clear: this strike is a choice. It is a decision by some of the most well-paid public servants in New Zealand to walk away from patients and cancel care."
