Latest news with #PayEquity
Scoop
5 days ago
- Business
- Scoop
ERA Changes Hurt Workers, Pander To Big Business
The Green Party says proposed changes to the Employment Relations Act announced today by the Government will further undermine workers' rights while pandering to big business. 'This cruel Bill will cut off our most vulnerable workers from the rights that belong to them,' says the Green Party spokesperson for Workplace Relations and Safety, Teanau Tuiono. "Our economy has been built by our workers - supporting them means supporting ourselves. For generations, workers' rights have been hard-won and should be protected as a cornerstone of a people-focused modern economy. 'Today, this Government has put forward a number of dangerous changes to the ERA, including redefining the roles of employees and contractors to allow gig economy companies like Uber to trample over the rights of their workers. 'The removal of automatic union membership on collective agreements will result in lower wages, and putting up barriers to raising personal grievances will entrench power imbalance and harm in our workplaces. 'All of this quite clearly plays directly into the hands of companies looking to cut corners and boost profit margins at the expense of our workers and communities. 'The Coalition has unapologetically pushed its anti-worker agenda this term - including gutting Pay Equity, scrapping fair pay agreements, reinstating 90-day trials, and introducing effective cuts to the minimum wage. 'A Green Government would undo the laundry list of attacks made by the current Government on the rights of workers,' says Teanau Tuiono.
Scoop
6 days ago
- Politics
- Scoop
Concern Over Signs Govt Will Reduce Sick Leave For Workers
The Green Party is calling on the Prime minister to stand up for workers' rights for once and rule out reducing sick leave entitlements. 'This Government for the wealthy keeps finding new ways of eviscerating workers' rights and tilting power to employers,' says the Green Party spokesperson for Workplace Relations, Teanau Tuiono. 'Our economy is built upon the backs of our workers, so to erode their rights to sick leave is nothing short of an attack on the morale and productivity of our workforce. 'The Government is making a habit of revealing such changes at the start of Winter when seasonal illnesses, flu and Covid are placing many families under strain. 'Women workers in particular will be disproportionately affected by this cruel policy as they tend to take more sick leave because of childcare responsibilities. For the Government to be considering reducing sick leave is another way to attack women workers following its Pay Equity bombshell. 'The fact that the Prime Minister hasn't ruled out halving the number of sick days for part-time workers speaks to a pattern of decision-making of a Government that doesn't listen to, nor care about, workers. 'The Coalition has unapologetically pushed its anti-worker agenda this term - gutting the Pay Equity process, scrapping fair pay agreements, reinstating 90-day trials, and changing the law so that Uber and other gig work platforms can keep their workers from getting their entitlements in already precarious job arrangements. 'More must be done to support our workers. The Green Party campaigned on five weeks of annual leave for everyone so that people have more time to connect with their whānau, communities, and things that matter to them. 'The Green Party will keep fighting for everyone in Aotearoa to have access to strong rights, secure work, and decent pay, to ensure workers can thrive,' says Teanau Tuiono.
Scoop
29-05-2025
- Business
- Scoop
A Dark Future Ahead For ECE
The Early Childhood Education (ECE) sector faces dark days ahead, with Budget 2025 funding lagging behind inflation and a two-year freeze on Pay Parity. ECE provision, teachers' pay and qualifications are being undermined, the Pay Equity claim has ceased, and a sector-wide survey revealed strong dissatisfaction and concerns over viability and rising parent fees. 'The sad reality is the government are demonstrating that they do not value ECE or that they do not believe the decades of evidence that attributes 'high-quality ECE' to better outcomes for children,' says Kathy Wolfe, Chief Executive of Te Rito Maioha. Yesterday the government announced sweeping changes to how new ECE teachers are paid, scrapping the need for employers to take into account qualifications, ECE teaching experience and other relevant experience. 'The new rules,' says Mrs Wolfe, 'give ECE centres the option of ignoring the qualifications or experience when employing a new teacher. An employer now can employ a new teacher on step one, the entry level salary for degree qualified teachers, regardless of whether they have multiple degrees and/or, regardless of their ECE work experience, or other relevant work experience. We sincerely hope that this will not happen and that employers will continue to value qualifications and experience. However without adequate funding, they will not have any options.' 'This government appears to be saying that experience and education no longer matter, that quality early childhood education can be sacrificed in the name of government cost-cutting. But what we know is that parents want the best for their children, not a system that drives passionate, qualified teachers out of the profession." 'The announcement to freeze Pay Parity for two years is also a further sign that the government's aim is to reduce their future investment commitments. This is purely a fiscal decision for the government. Employers now cannot opt into funded higher parity options to value their teaching staff. Unfortunately, it also stops New Zealand's move towards a fully qualified ECE sector and erodes our place as a world leader in ECE. 'It's clear to us that the recent changes were rushed and implemented without proper consultation, while the lack of investment in the Budget is the result of the government limiting its expenditure in ECE investment. We're heading back towards a system where quality education and what matters for our children are not the driving motivators behind government decisions. This is incredibly frustrating and sad, especially when you consider the significant return in future social costs when we get the right focus on investment in quality outcomes for children,' says Mrs Wolfe. A recent survey of the ECE sector revealed that over 68% of providers expect to raise fees, while 27% remain undecided. Only 5% said they do not anticipate a fee increase. 'Centres are telling us that the lack of funding in the budget will force them to raise fees, and reducing costs puts the quality of early childhood education at serious risk because the reduction will mostly be in staffing. Centres may end up reducing teacher-to-child ratios, cutting staff hours, hiring fewer qualified teachers, postponing repairs, shrinking food portions, or stepping away from Pay Parity all together where they are able. It's an absolute travesty, says Mrs Wolfe.' Toni Christie, Director of Childspace Early Childhood Institute and owner/operator of ECE centres, agrees, 'between the Pay Equity changes, the Regulations Review, and now this pay parity change create a picture which devalue qualifications and work experience for new teachers all happening at once, it's easy to see why the ECE sector feels under attack. Rather than focusing the Regulations Review on improving the safety and the wellbeing of tamariki, the main message seems to be a willingness to lower teacher qualification standards. Instead of investing in the profession and training more kaiako, the government is undermining the right of our predominantly female workforce to be fairly paid.' 'For over 40 years, consistent policy efforts have aimed to ensure that early childhood education is treated on par with the rest of the education system, including the goal of 100% qualified teachers. Now, the government appears to be signalling that high-quality ECE is not part of their strategy, using reviews and funding mechanisms to deliberately lower standards in the sector. This is a conscious policy choice and it is all being pushed through and announced without consultation or warning.' 'The deliberate freezing of providers being able to opt into higher levels of Pay Parity as they build up a more qualified workforce for two years, this reinforces the message that, 'quality and qualifications do not count'. 'No one wants to remove the education from early childhood education. That might be a cheaper option, but it fails to recognise the significant and critical developmental growth that occurs during these early years. Specialist knowledge and expertise that requires a qualified workforce is essential to meet the complex needs of our youngest tamariki. The changes being made under urgency and without consultation will have dire consequences for Aotearoa and our Tamariki, especially when we have the Minister of Education focusing on improving children's learning – it all begins in ECE!' says Mrs Christie. 'The big fear with all these policy decisions,' says Mrs Wolfe, 'is that the implications are real and severe. The funding shortfall and pay parity changes will result in record centre closures; decreased child participation in ECE; negative impacts on child learning, development and wellbeing; an increase in teacher shortages and a reduction in workforce participation by parents and caregivers.' 'In Budget 2024, ECE services absorbed most of the increased teacher salaries and rising operational costs due to inflation, with limited ability to pass these costs on to parents through fee increases. Centres did this in good faith, believing the government to follow through with timely and meaningful measures to address the resulting funding shortfall in the next budget.' 'Budget 2025 failed to honour this good faith approach and the widening gap between rising inflation-driven costs and inadequate government investment has now become unsustainable.' 'While an ECE funding review has been approved, it is going to take two years to see any benefit, so we urge the Associate Minister for Education to urgently provide interim investment or another form of financial relief until the review is complete. Without this, the sector faces the risk of systemic collapse. We remain committed to working with the government, but it's essential that the majority of voices within the sector are genuinely heard.' 'With around 194,597 tamariki, 33,309 teaching staff (qualified and unqualified) and 4,409 service providers[1] in ECE being affected by these sweeping changes, the government's move to focus on the commercial aspects of ECE as opposed to supporting quality ECE that then leads to better outcomes for our youngest people in school, paints a dark picture for our tamariki, says Mrs Wolfe.' Notes: The ECE sector has experienced a multi-year funding freeze prior to 2017 under National leaving the sector approximately 11% behind CPI over the last 10 to 15 years. The survey ran from 26/05/25 with 60 responses from kaiako, managers and owners and is accurate at time of release. Teacher Salaries affected by new rules To value experience and qualifications, New Zealand had a system that worked out ECE teacher's salaries in an 11-step system. 'Recognised Service' acknowledges your work experience with each year in ECE counting as a step.' If you were moving from a job outside of ECE, 'Previous Relevant Experience' recognised what was termed relevant experience as half a step, up to a maximum of two steps. A teacher's qualifications were also relevant, and determined what step on the salary scale a teacher began at. Employers may now choose what step a teacher starts on when they begin a new job. It will be entirely discretionary as to whether an employer counts previous relevant experience, previous ECE experience, or qualifications. relevant experience as half a step, up to a maximum of two steps. A teacher's qualifications were also relevant, and determined what step on the salary scale a teacher began at. Employers may now choose what step a teacher starts on when they begin a new job. It will be entirely discretionary as to whether an employer counts previous relevant experience, previous ECE experience, or qualifications. The rules do not change the pay rates of existing employee contracts. The Funding Handbook published by the MoE is third-tier legislation and is issued under section 548(5) of the Education and Training Act 2020. The new rules form part of the Handbook. There has been no consultation with the sector on these changes. Pay Parity and Teacher Salaries affected by two year Pay Parity freeze for two years from 9 June Under Pay Parity, to move up a step, a teacher needs to work 2,080 hours, which is the equivalent of one year of full-time employment. If you're a part-time teacher, you only move up once you hit the next 2,080 hours (which will be more than a year). How much funding a provider receives from the government is based on the age of the children and how many hours they are enrolled for, and the percentage of ECE qualified teachers a centre has. Centres choose which parity category they want to be on; this impacts their funding and the salary steps they need to pay. At each funding round (3 per year), ECE providers can move up from e.g. 'extended' to 'full pay parity'. From the 9 June the government have frozen the ability to change the opt in level for two years. Parties to the ECECA Collective Agreement would still need to count previous experience and higher qualifications when employing new teachers. 1 January 2025 rates 80-99% Qualified Teachers (Funding rates per enrolled child per hour, max 6 hrs per day) Base Rate Parity Steps 1-6 Extended Parity 7-11 & K2 Full Parity Kindergarten Under 2 $15.17 $15.67 $16.89 $17.98 $19.41 2 year olds $8.33 $8.63 $9.30 $9.91 $10.63 20 Hours $14.50 $15.01 $16.22 $16.86 $17.57 1 January 2025 rates 100% Qualified Teachers (Funding rates per enrolled child per hour, max 6 hrs per day) Base Rate Parity Steps 1-6 Extended Parity 7-11 & K2 Full Parity Kindergarten Under 2 $15.79 $16.32 $17.60 $18.60 $20.03 2 year olds $9.17 $9.50 $10.24 $10.74 $11.45 20 Hours $15.33 $15.86 $17.14 $17.68 $18.39
RNZ News
22-05-2025
- Business
- RNZ News
Budget 2025: Coalition claws back savings from pay equity, KiwiSaver, Best Start
The coalition has slashed an average $5.3b government spending for each of the next four years in its latest Budget - about half of which comes from its controversial pay equity overhaul. Other savings have been found by halving the government's KiwiSaver contributions , tightening welfare for 18-and-19-year-olds, and fully means-testing the Best Start child payment. The cuts are counterbalanced by new spending of $6.7b a year - mostly through increased budgets for health , education law and order, and defence. That sum also includes a new $1.7b "Investment Boost" tax incentive for businesses - billed as the Budget's "centrepiece" - and some targeted cost-of-living support. Unveiling her second Budget as finance minister, Nicola Willis pitched it as "responsible". "This is not austerity - far from it. In fact, it is what you do to avoid austerity," Willis said. Budget documents reveal the tightening of the pay equity regime - passed under urgency in early May - will net the government $2.7b every year. It has also "repurposed" a one-off $1.8b from previous contingencies related to the scheme into other capital expenditure. Willis said the savings amounted to about $12.8b in total over the next four years. She told reporters the scheme, when set up in 2020, was expected to cost just $3.7b over that period, which should give a sense of the "scale of the blow-out". The pay equity changes mean workers now face a higher threshold to prove they are underpaid due to sex discrimination. The government had earlier said the changes would save "billions of dollars" but refused to divulge the exact sum until Budget Day. Willis stressed "a significant sum" remained to meet potential costs of future pay equity settlements under the new regime. "The government anticipates there will be pay rises in female-dominated public sector workforces achieved through normal collective bargaining." As widely expected, the Budget includes significant changes to the KiwiSaver retirement savings scheme , affecting employers, employees and the government. The annual government contribution has been halved to a maximum of $260.72 from July and scrapped altogether for those earning more than $180,000 a year. The default rate of employee and employer contributions will be gradually increased from 3 percent to 4 percent over a three-year-period, though workers can temporarily opt to stay at 3 percent for a year at a time. The scheme will also be expanded to fully include 16-and-17-year-olds from April next year. From April next year, the Best Start child payment scheme will be fully income tested in the same way the second and third years are, with payments cut off when a family earns more than $97,000 a year. It would save $211m over four years. In a surprise change, eligibility for the Jobseeker benefit is also being tightened. Eighteen-and-19-year-olds will be subject to a "parental assistance test" to prove their parents cannot support them. That's expected to recoup $163.7m over four years. Willis made a point of highlighting a "major new tax incentive" - beginning immediately - designed to encourage business investment. The "Investment Boost" policy allows businesses to deduct 20 percent of the cost of new assets - such as machinery or tools - from taxable income on top of normal depreciation. That means those businesses will face a much lower tax bill in the year of purchase. Willis said the policy would apply to all new assets purchased in New Zealand, as well as new and used assets imported from overseas. It would cover commercial buildings but not land or residential buildings. She said it was expected to lift GDP by 1 percent and wages by 1.5 percent over the next two decades. "Our government knows businesses have been knocked around by challenging local and international economic conditions. This tax incentive shows that we are backing them to succeed," Willis said. The new tax credit was expected to cost $1.7b a year in reduced revenue. As teased, the Budget includes some targeted cost-of-living support through an increase to Working for Families abatement thresholds and rates. The changes are expected to deliver an extra $14 a fortnight on average to about 142,000 families, most earning less than $100,000 a year. The SuperGold card rates rebate will also be expanded to provide more support for up to 66,000 more retirees. A new income abatement threshold is being added and the maximum rebate lifted from $790 to $805. The expansion would cost $154m over four years. As well, the Budget includes $91m over that period to allow doctors to issue prescriptions for up to 12 months for medicines "if it is clinically appropriate and safe to do so." Most government departments have received very limited or no extra funding this year, meaning they will have to absorb increases in costs, such as wages. Health (up $7b), education (up $1.5b), law and order (up $1.1b), and defence (up $1.9b) are the main exceptions regarding operating funding over four years. In late April, Willis primed New Zealanders to expect "tough but necessary" spending cuts to existing funding commitments, with new initiatives "strictly limited to the most important priorities". Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
22-05-2025
- Business
- RNZ News
Budget 2025: Coalition claws back savings from pay equity, KiwiSaver in Budget, Best Start
The coalition has slashed an average $5.3b government spending for each of the next four years in its latest Budget - about half of which comes from its controversial pay equity overhaul. Other savings have been found by lving the government's KiwiSaver contributions tightening welfare for 18-and-19-year-olds, and fully means-testing the Best Start child payment. The cuts are counterbalanced by new spending of $6.7b a year - mostly through increased budgets for health , education law and order, and defence. That sum also includes a new $1.7b "Investment Boost" tax incentive for businesses - billed as the Budget's "centrepiece" - and some targeted cost-of-living support. Unveiling her second Budget as finance minister, Nicola Willis pitched it as "responsible". "This is not austerity - far from it. In fact, it is what you do to avoid austerity," Willis said. Budget documents reveal the tightening of the pay equity regime - passed under urgency in early May - will net the government $2.7b every year. It has also "repurposed" a one-off $1.8b from previous contingencies related to the scheme into other capital expenditure. Willis said the savings amounted to about $12.8b in total over the next four years. She told reporters the scheme, when set up in 2020, was expected to cost just $3.7b over that period, which should give a sense of the "scale of the blow-out". The pay equity changes mean workers now face a higher threshold to prove they are underpaid due to sex discrimination. The government had earlier said the changes would save "billions of dollars" but refused to divulge the exact sum until Budget Day. Willis stressed "a significant sum" remained to meet potential costs of future pay equity settlements under the new regime. "The government anticipates there will be pay rises in female-dominated public sector workforces achieved through normal collective bargaining." As widely expected, the Budget includes significant changes to the KiwiSaver retirement savings scheme , affecting employers, employees and the government. The annual government contribution has been halved to a maximum of $260.72 from July and scrapped altogether for those earning more than $180,000 a year. The default rate of employee and employer contributions will be gradually increased from 3 percent to 4 percent over a three-year-period, though workers can temporarily opt to stay at 3 percent for a year at a time. The scheme will also be expanded to fully include 16-and-17-year-olds from April next year. From April next year, the Best Start child payment scheme will be fully income tested in the same way the second and third years are, with payments cut off when a family earns more than $97,000 a year. It would save $211m over four years. In a surprise change, eligibility for the Jobseeker benefit is also being tightened. Eighteen-and-19-year-olds will be subject to a "parental assistance test" to prove their parents cannot support them. That's expected to recoup $163.7m over four years. Willis made a point of highlighting a "major new tax incentive" - beginning immediately - designed to encourage business investment. The "Investment Boost" policy allows businesses to deduct 20 percent of the cost of new assets - such as machinery or tools - from taxable income on top of normal depreciation. That means those businesses will face a much lower tax bill in the year of purchase. Willis said the policy would apply to all new assets purchased in New Zealand, as well as new and used assets imported from overseas. It would cover commercial buildings but not land or residential buildings. She said it was expected to lift GDP by 1 percent and wages by 1.5 percent over the next two decades. "Our government knows businesses have been knocked around by challenging local and international economic conditions. This tax incentive shows that we are backing them to succeed," Willis said. The new tax credit was expected to cost $1.7b a year in reduced revenue. As teased, the Budget includes some targeted cost-of-living support through an increase to Working for Families abatement thresholds and rates. The changes are expected to deliver an extra $14 a fortnight on average to about 142,000 families, most earning less than $100,000 a year. The SuperGold card rates rebate will also be expanded to provide more support for up to 66,000 more retirees. A new income abatement threshold is being added and the maximum rebate lifted from $790 to $805. The expansion would cost $154m over four years. As well, the Budget includes $91m over that period to allow doctors to issue prescriptions for up to 12 months for medicines "if it is clinically appropriate and safe to do so." Most government departments have received very limited or no extra funding this year, meaning they will have to absorb increases in costs, such as wages. Health (up $7b), education (up $1.5b), law and order (up $1.1b), and defence (up $1.9b) are the main exceptions regarding operating funding over four years. In late April, Willis primed New Zealanders to expect "tough but necessary" spending cuts to existing funding commitments, with new initiatives "strictly limited to the most important priorities". Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
