The next round in the pay campaign begins: district health board negotiations are underway in the South Island. NZNO hopes the outcomes will close the pay gaps between public sector members around the country.

WITH THE Northern Districts Multi Employer Collective Agreement (MECA) ratified by members and the renegotiation of the South Island (SI) MECA and the Canterbury District Health Board (DHB) agreement underway, NZNO's national remuneration strategy is on target.

With the ratification of the Northern Districts MECA last month (see news and events p9), almost all NZNO's 18,000 members employed in the public sector are covered by MECAs. The only members not covered are senior nurses in the South Island, who are covered by a range of agreements; senior nurses in the seven lower North Island DHBs, whose collective agreement is still being negotiated; and those nurses on individual employment agreements. It's a far cry from the more than 20 contracts which used to cover public sector members just over two years ago.

The first step on NZNO's ambitious journey from a plethora of public sector employment contracts to a national pay equity settlement, came with the ratification of the first SI MECA, in December 2001. This MECA covers approximately 3000 members in the Nelson/Marlborough, West Coast, South Canterbury, Otago and Southland DHBs and expired on June 30. This was followed by the MECA covering around 4000 members in the seven DHBs in the lower North Island: Taranaki, Wanganui, MidCentral, Wairarapa, Hawke's Bay, Hutt and Capital and Coast. These negotiations were protracted. It expires in December this year. This was followed by the Auckland MECA covering 5000 members employed in the Auckland, Waitemata and Counties Manukau DHBs. It was secured after threat of industrial action and expires next July. This MECA is the benchmark for public sector members, with its pay rates overall, the highest, but it does not have a monopoly on top rates.

The Canterbury DHB's collective agreements, secured after strike action in late December 2001, was ratified in early 2002 and covers 2300 members.

The Northern Districts MECA, covering approximately 4000 members in Northland, Waikato, Bay of Plenty, Tairawhiti and Lakes DHB was marked by threats of industrial action to ensure senior nurses were included in the collective agreement and again after the employers' supposed final offer was rejected by members. Five days of mediation proved the catalyst for an offer members found acceptable. The term is for three years to July 2005. There is an exit clause after two years that allows members to participate in any industrial action in support of NZNO's national pay strategy.

The four MECAs and the Canterbury agreement form the foundation from which the second round of the pay campaign is launched. This involves renegotiating the SI MECA and the Canterbury agreement simultaneously. Four days have been completed, with the lead NZNO advocate for each, Glenda Alexander for the MECA and Chris Wilson for Canterbury, attending both sets of negotiations.

NZNO industrial adviser Alexander said the aim of these negotiations was to close the pay gaps that currently exist across the country. The percentage pay increase needed to do so varies within and between the MECA and the Canterbury agreement. The number of steps in the pay scales is also a factor, so talk of a percentage pay increase has little relevance. For example, the top step of the registered nurse five step scale under the Auckland MECA is $45,000, Compared to the top rate of the five-step scale in Canterbury at $42,623 and the top step of the six-step scale in the South Island MECA at $41,282. The Canterbury scale takes seven years to achieve.

"We want to close the pay gap nationally. To do that there will have to be some compression of pay scales. We realise it's a big ask to close the pay gap by the middle of next year. But now is the time to move forward--it's time to get on with it. We believe the DHBs and Government are taking our case for national pay rates seriously," Alexander said.

Canterbury DHB members voted earlier this year to work collaboratively with SI MECA members and Wilson believes that strategy is working successfully. She is confident the pay gap can be closed. "There will have to be a significant movement to close that gap but we have a realistic claim."

NZNO has a two-pronged approach in its pay strategy: closing the pay gap for DHB members across the country; and then moving to secure pay equity for nurses. NZNO's organising services manager Laila Harre is a member of the Government's Pay Equity Taskforce which aims to progress pay and employment equity in the public service, health and education.

NZNO sees pay equity as a powerful means of improving recruitment to and retention in the profession. "The health of all New Zealanders is affected by nurses' pay. As long as nurses, midwives and health care assistants are underpaid, staff shortages will continue to put our health service under pressure," Harre said.

Pay equity is thus a political issue requiring a political solution. For NZNO and nurses that means the Government must provide enough health funding to ensure the dream of pay equity can become a reality. The Government wants the taskforce by the end of this year to develop a five-year action plan aimed at closing the gender pay gap. But NZNO wants a full pay equity settlement that can be implemented from the middle of 2004. That means the Government committing money in the 2004 Budget. NZNO representatives met key government ministers, including Finance Minister Michael Cullen in June, to outline its pay equity aims. Harre believes the Government's aim of closing the public sector pay gap within five years, beginning next year, and NZNO's aim of pay equity settlements from mid-2004 are compatible.

As well as further discussion with the Government on timing around pay equity settlements and input to the taskforce, NZNO will also run a campaign to build public support for pay equity. It will focus on why nurses' work deserves to be more highly valued in our society.