HCHA Media Release: Major Instability: Risk Of Service Disruption For Health Sector

Home and Community Health Association express grave concerns over the rapid changes around pay equity.

There will be disruption and instability for employers and workers across the broader community sector. HCHA urgently request a meeting with key funders to address these concerns.

 

MEDIA RELEASE

Date: 7 May 2025

Major instability: Risk of service disruption for Health Sector

Government changes to Equal Pay Act will result in instability and risk service disruption for home and community services

The Home and Community Health Association has expressed serious concern at the urgent amendments made by the government to the Equal Pay Act yesterday. These changes threaten to undermine all the progress made towards achieving fair pay for essential workers in home and community support services, and wider health sector, particularly with an ageing population increasingly reliant on home care.

The amendments halt all ongoing pay equity claims and stop future settlements aimed at ensuring fair compensation for those providing vital home care services.

This raises a critical question: what now?

“Home care is a vital yet often invisible part of our health system, providing over 27 million hours of support each year. Care and support workers must not be forgotten. We urgently need clarity from funders on their proposals to ensure these essential workers are paid fairly. The changes create harmful uncertainty and instability for employers and workers in home and community support,” said Lisa Foster, Kaiwhakahaere of the Home and Community Health Association (HCHA).

"We are deeply concerned about the impact on the 110,000 people who rely on home care. This essential workforce must be valued and shown that they matter. The current message is quite the opposite."

Many essential home services rely on fully funded contracts, but funding has eroded over time and pay rates have been diminishing. Disparities within the health sector funding (ACC, Health NZ, DSS) make this even more challenging. The sector is calling for Te Whatu Ora | Health New Zealand to urgently share their proposals to address these sustainability issues that threaten health services.

The pay equity process with unions and employers has identified undervaluation and discrimination, which must be addressed. The Home and Community Health Association will urgently seek further clarity from the government on what is now proposed for a pragmatic sector solution.

"The real issues of low pay rates and underfunding need resolution. The significant pay gap for Care and Support Workers cannot be ignored. This issue cannot be left without a clear plan and pathway forward," said Lisa Foster, Kaiwhakahaere of the Home and Community Health Association (HCHA).

  "Gender discrimination and much higher pay rates for hospital staff (paid by Health NZ) compared to community workers must be addressed. A re-balance is urgently needed. Support workers deserve fair compensation based on their job, not their workplace – whether in the community or a hospital".

Lisa Foster Chief Executive HCHA, and Murray Penman Chair of HCHA, are available for further comment and interviews. /ENDS

Media Inquiries: All Media inquiries should be directed to: Lisa Foster, Chief Executive HCHA: lisa.foster@hcha.org.nz or HCHA Chairperson Murray Penman: murray.penman@visionwest.org.nz  

 Click here to read our media release: HCHA Media Release 7th May 2025