Clerical and Administration Pay Equity
In November 2020, District Health Boards and the PSA reached a significant milestone towards finalising a pay equity settlement for around 8,700 DHB clerical and administration workers covered by the Pay Equity Claim.
Below you will find information about the agreement. This page will be updated as the work programme progresses.
The agreement includes:
- Maximum rates for a new national pay structure to be developed over the next six months (see Stage 1: New national roles and maximum pay rates below)
- A $2,500 interim lift in pay rates for all DHB clerical and administration workers who currently receive less than the agreed maximum job band rate. This lift in pay rates is effective as of 30 November 2020, and will be added to salaries in the first quarter of 2021.
- Agreed Pay Design Principles for PSA and DHBs to use in developing a new national pay rate and job band structure.
- A work programme to develop a national pay rate and job banding structure. This work programme will contribute to a proposal for a full pay equity settlement by mid-2021, when PSA members covered by the claim will have the opportunity to vote on the settlement.
The claim covers all DHB clerical and administrative staff. The PSA is holding meetings in DHBs from 30 November to 11 December 2020 to report back to all employees covered by the claim. Following these meetings, the PSA will hold a ballot for their members and the results are expected to be known by 15 December.
Issued by the PSA and 20 DHBs.
30 November 2020
30 November 2020
Assessing the pay equity claim included mapping the existing work represented by 1500 job titles into the following national role profiles. At this stage, only the new top rates for each role profile has been agreed.
|National role profile||Top pay equity rates ($)|
|PA/EA with staff||74,000|
|PA/EA without staff||70,700|
|Support Services Administrator||56,500|
The PSA and DHBs will apply a set of agreed Pay Design Principles to develop a national pay rate and job band structure. That will include the size and number of steps in each band and how people progress up the pay scale.
PSA and DHBs will also agree a process for translating people on to the new national pay structure.
The size of any individual increases won’t be known until the pay equity settlement has been agreed, around the middle of next year.
Because pay rates for clerical and administration work vary so widely, the size of any final increases will vary significantly between roles and DHBs.
These Frequently Asked Questions (FAQs) have been prepared to address questions on the Clerical and Administration Pay Equity agreement.
They will be updated regularly.
These FAQs were updated on 18 December 2020.
Please find below some key questions and answers. Refer to the PDF FAQs above for detailed and updated questions and answers.
What is an initial agreement if it’s not a settlement? In short, we’re well advanced towards settlement, but it will be the middle of next year before we’re finished. The first stage involved establishing the new role profiles and the top pay equity rates for the pay bands they sit in. Part of that agreement is an interim adjustment to pay rates while we work on the second stage – working out details like pay steps and progression. Most importantly, the PSA and DHBs need to map all existing roles and work out how we transition everyone from their existing pay rates onto the new national pay structure. We’re aiming to have that done around the middle of next year. Why will it take so long to get a pay equity settlement? Because it’s so complicated. The PSA and DHBs have to work through 1,500 existing unique job titles across 20 DHBs with widely varying pay rates to develop a new national pay structure. The first stage we’ve just completed has agreed the top rates of the pay bands the new roles will sit in. In the second stage we’ll map all existing roles and work out how we transition everyone fairly from their existing pay rates onto the new national pay structure. We will also agree an approach to maintaining pay equity in the future. Who were the comparators? DHBs and PSA signed confidentiality agreements with the comparator organisations. People from these organisations were interviewed and pay equity tools and methodologies were used to compare their work and remuneration with clerical and administration employees.What was the criteria DHBs and PSA developed when identifying the comparators? In the case of the Clerical and Administrative claim, the first step was to identify potential male-dominated roles as comparators using the Australia New Zealand Standard Code of Occupations and their associated skill levels, and assess them against the criteria agreed by DHBs and PSA. When will the PSA report back to members? Report-back meetings run from 30 November until 11 December 2020 and will be followed by an electronic ballot. The results will be known by 20 December.
What is the interim adjustment? The adjustment is a $2,500 flat rate increase to existing pay rates while we continue working towards a pay equity settlement. It means those covered by the claim receive something while we carry out the work. Who will get the adjustment? The adjustment will apply to all clerical and administration staff who currently receive less than the pay equity rate. This includes those workers who aren’t PSA members covered by the four regional MECAs and those covered by IEAs or collective agreements negotiated by other unions. Will everyone get the same adjustment? The interim lift will increase pay for most workers who currently receive less than the agreed top pay equity rate. As much as $2,500 a year will be added to their salaries. How do you account for workers with higher pay rates receiving smaller or no adjustment? This claim is about addressing undervaluation and bringing rates across the country up to the new agreed pay equity rate for the role. For the minority of cases where people are already receiving the new rate, there is no undervaluation to address. Remember also, this interim adjustment and increase in rates are different to MECA bargaining where any negotiated agreement is applied across-the-board. When will we receive the interim adjustment? The interim adjustment is effective from 30 November 2020 and we aim to to deliver this in the first quarter of next year. Is the interim adjustment a one-off increase?
The interim adjustment is not a one-off, it is the first step towards national pay equity rates. When the settlement is finalised next year, there will be further pay equity increases until pay equity is fully implemented.
What happens if someone opts out?
All clerical and administration staff covered by the claim will be offered the interim adjustment irrespective of union membership or which agreement they’re on. For most workers who currently receive less than the pay equity rate, as much as $2,500 a year will be added to their salaries. Anyone who has chosen to opt out will not be offered the interim adjustment. However, the new Equal Pay Amendment Act means all those who opt out will still be offered the final pay equity settlement. If someone who opts out accepts the pay equity settlement, they will not be able to make their own pay equity claim.
How will the national pay structure work?That’s the detail we have to work on next – so far we’ve agreed 15 different role profiles covering the vast majority of the existing work and the top step of each pay band. The next stage will include mapping remaining work and applying the agreed Pay Design Principles to develop a national pay rate and job band structure. That will include the size and number of steps in each band and how people progress up the pay band. What is the overall increase I will receive in the pay equity settlement? The interim adjustment is a flat dollar increase to existing pay rates. Once we get to the proposed pay equity settlement, people will get details of the role they’ll transition to and the pay step they’ll be on. The amounts for individuals will vary significantly depending on how big the gap is between the old and new rates. The amount of variation is the reason why it will take until the middle of next year to finalise the settlement. How many people are covered by this claim? Approximately 8,700 clerical and administration employees across 20 DHBs. Will this be in addition to the process for future bargaining? Pay equity is about addressing historic undervaluation and is separate from collective employment agreement negotiations. Having a new national pay structure and pay bands will affect future bargaining. When can we see the new pay bands? We have agreed the top rates for each band, over the next six months we’ll complete the new national pay rate and job banding structure – the aim is to have this finished by the middle of next year. What if a worker is already at the top of the pay band? Will they get an increase? Pay bands and rates vary widely across the country and as with the interim adjustment, someone already paid the same or more than the pay equity rate for their role won’t get an increase. There aren’t many people in that position and the vast majority will see their rates increase – in some cases quite substantially. What happens if there are new roles or roles change in the new structure? The new pay structure will include a gender-neutral job evaluation system to provide a consistent framework for measuring the size of roles as they change or as new roles are introduced. What about new employees starting before the pay equity settlement? Existing terms and conditions will apply, including the interim adjustment, and the person will transition to the new national pay structure at the same time as everyone else. Are any improvements other than pay increases being considered? In addition to pay equity and addressing historic undervaluation, the clerical and administration workforce will have a national pay rate and job banding structure ensuring consistent pay rates across the country – something this workforce has never had before. Can the DHBs afford to pay it? Yes. The Government has committed funding to address the historic undervaluation. How will this impact the other pay equity claims for nurses, midwives and allied public health, scientific and technical workers? It won’t. Each claim will work through its own process using the pay equity tools and methodologies.