Dispute over nurses' collective agreement continues

Health NZ offers 3% pay rise over two years and lump-sum payments

Dispute over nurses' collective agreement continues

Health New Zealand and the nurses' union continue to disagree over the workforce's collective agreement that has been in negotiation since October last year.

Health NZ presented a new offer to the union this week, offering a total 3% pay increase over two years.

Under the new offer, nurses would get a 2% pay increase in 2025, higher than the previous offer's 1%. They wil also receive a 1% increase by 2026.

Health NZ added that the offer includes two lump-sum payments of $325, one in 2025 and another in 2026.

Overall, this means a new graduate nurse on $75,773 would gain a total pay increase of $8,337, or 11%, by the end of June 2026, according to Health NZ the organisation.

Most registered nurses with a current salary of $106,739 would receive a pay increase of $3,224 to $109,963 by the end of June 2026.

The offer will expire on July 31 if not ratified, according to Health NZ acting chief executive Robyn Shearer.

"We value our nurses and want to do the best we can for them, but the reality is that Health NZ is operating within tight financial constraints," Shearer said in a statement.

"We encourage the union to take this offer to their membership for a vote."

Nurses' union rejects the offer

But the New Zealand Nurses Organisation (NZNO) told Radio New Zealand that the pay offer is a "massive step backward" for the health system and patients.

"We have had clear indication the government is involved - and is increasingly involved - in directing the course of these negotiations," said NZNO chief executive Paul Goulter as quoted by the news outlet.

"It's not bargaining. It's just being told what you're going to get and that's it."

In a separate statement, Goulter also accused the government of removing measures to address staffing concerns in their latest offer.

"Te Whatu Ora has removed that from their latest offer without explanation. This demonstrates their focus is on cost cutting, not patient safety," he said in a statement.

The NZNO chief, citing figures from January to October last year, said 47.1% of all wards are understaffed 20% of the time.

"That means nurses and health care assistants are working in understaffed wards at least one shift a week," he said.

According to Goulter, a survey among their nurses shows they have "grave concerns" that continued understaffing is putting their patients at risk.

"Overworked staff are unable to give patients the care they need and leads to staff burnout," he said.

Shearer said it was hard to resolve clinical need through collective bargaining, Radio New Zealand reported.

"It's not an easy thing to put into settlement agreement, but we do have operational policies which look at safe staffing and rostering and that continues," she told RNZ's Morning Report.