Above: NZNO PHC strike action – Rotorua, 3 September 2020

PHC MECA Update 22 December 2020

Kia ora Member,

Improved Proposed MECA

Further to the previous update providing full detail of the improved proposed MECA, there have been some questions raised which we have responded to below.

1. How do the proposed PHC MECA RN etc rates compare to the DHB MECA current rates?

The new Step 6, $36.02 (parity with the DHB MECA) would be implemented from 1 February 2021.

As at 1 February 2021 employees who have been on Step 5 for 12 months or longer will move to Step 6 for a 7.75% overall increase ($5,400 per annum). Other employees will progress to Step 6 in accordance with the appropriate years of service on the wage scale.

The new DHB/NZNO MECA RN Step 7 of $37.10 came into effect this year and it can only be accessed after having been on Step 6 for 12 months. Given the proposed PHC MECA expires on 31 August 2021, Step 7 will need to be in the 2021 MECA by 1 February 2022 and that is a further 3% being the last stage to the 10.6% pay parity gap for experienced nurses. NZNO made it very clear that Step 7 is required to achieve the full pay parity and this needs to be part of the next year's additional funding parameters.

2. Why are there different back-pay dates for some groups?

Backdating pay in any bargaining is not guaranteed and hasn’t always occurred in this MECA and other MECA/CA bargaining. Your team fought hard to gain as much backdating as possible.

It was most important to get the funding and implementation for RN Step 6 as early as possible as that is where the greatest gain is going forward. To achieve this on 1 February 2021 meant that pay would be backdated to 6 January 2020 for the first RN increase of 2.5%.

Enrolled Nurses and Medical Receptionists get backdating to 1 September 2019 for the first increase of 2.5% because neither occupational group has an additional step increase in the proposed MECA.

It is important there is fair recognition for all groups.

3. Why is the term of the proposed MECA only until 31 August 2021?

Keeping the term of the PHC MECA to 31 August 2021 was very important to your team in order to be best placed to maximise other 2021 influences.

The DHB/NZNO MECA negotiations remain ongoing and are recommencing in February 2021. Further, the outcome of the DHB/NZNO Pay Equity settlement will inform the pay rates for all nursing, midwifery and health care assistants across the health sector. Similarly the DHB/PSA Pay Equity process should inform rates for medical receptionists and administration staff.

4. Why is the Registered Nurse Merit criteria changed?

The aim of the amended merit criteria is to update the criteria for current purpose, rather than reduce access.

It is also important to note that merit steps are not in the DHB/NZNO MECA. They have PDRP allowances.

5. Will the additional funding for new RN Step 6 in the proposed PHC MECA stop on 30 June 2021 with the end of the funding year?

No, this would not meet good faith obligations and contravene the MECA which is legally binding. The Government has made a commitment in writing to, in good faith, address any potential funding shortfall that continues after the 2021/2022 annual capitation adjustment is applied in July.

6. Does the proposed PHC MECA only cover NZNO members?

Yes, including the back pay. Non-NZNO employees need to negotiate their own terms and conditions with their employer on an individual basis. 

7. Why has the funding for new RN Step 6 only been given to NZNO members and those employers covered by the MECA?

NZNO can legally only negotiate on behalf of members that work for employers who are party to the 2019 PHC MECA negotiations.

Further, in September 2020, when the DHBs and Ministry of Health finally indicated funding support for pay parity in Primary Health Care they stated the initial focus would be on the PHC MECA.

NZNO supports pay parity across the Primary Health Care sector, including Māori and iwi provider nurses. The 2019 PHC MECA, in our view, sets the precedent for that occurring.

Pay parity for the sector will continue to be progressed by way of an Accord between employer representatives and DHBs and the Director General of Health.

8. What are the provisions for backpay?

Members will be eligible for backpay if:

• they are employed at the back-pay date specified for your occupational group (see previous update email) and
• they are still employed and an NZNO member at the date of ratification by the NZNO. This is likely February 2021.

Where to next?

In the week of 11 January we will update you on the employer ratification process along with the timing of our own ratification process.

Kia tau mai rā ngā manaakitanga a Hine Raumati ki runga i a koutou katoa

Wishing you a safe and happy holiday season, at home and at work!

Ngā mihi,

Chris Wilson