Ref: 2122-1881

 

Dear T Barnett,

 

On behalf of the Ministry of Business, Innovation and Employment I
acknowledge your email of 28^th March 2022 requesting under the Official
Information Act 1982 (the Act), the following:

 

‘Why are mental health support workers across the sector are not paid
inline with the Support Workers (Pay Equity) Settlements Act 2017

specifically the rates that relate to clause 3

3Adjustment for year ending 30 June 2022

(1)

This clause applies if the compound annual growth rate for the Labour Cost
Index for the period starting on 1 July 2017 and ending on 30 June 2021 is
more than 1.7%, in which case the result of the following formula will be
greater than 0.017:

(a ÷ b)0.25 − 1

where—

a

is the Labour Cost Index at 30 June 2021 b is the Labour Cost Index at 30
June 2017.

(2)

If this clause applies, the hourly wage for a support worker for the
period beginning on 1 July 2021 and ending on 30 June 2022 is calculated
as follows:

a × (((b ÷ c) − 1.0174) + 1)

where—

a

is the worker’s hourly wage under clause 1 or 2 b is the Labour Cost Index
at 30 June 2021 c is the Labour Cost Index at 30 June 2017.

(3)

In this clause, Labour Cost Index means the Labour Cost Index (all
sectors, salary and wage rates, including overtime) published by
Statistics New Zealand.’

 

 

Your request is being processed in accordance with the Act and a response
will be sent to you in due course.

 

If you have any enquiries regarding your request, or its urgency, feel
free to contact us via email at [1][MBIE request email].

 

Nāku noa, nā

 

Ministerial Services

Corporate, Governance and Information  |   Ngā Pou o te Taumaru

Ministry of Business, Innovation & Employment

15 Stout Street, Wellington 6011 |  P O Box 1473 Wellington 6140

 

 

[2]www.govt.nz - your guide to finding and using New Zealand government
services

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Tēnā koe

Thank you for your query about pay equity for mental health workers under
the Support Workers (Pay Equity) Settlements Act 2017 (the Act), in
particular, the Labour Cost Index (LCI) adjustment.

The Ministry of Business, Innovation and Employment does not hold
information on this issue. However, we understand that the Ministry of
Health has responded to you on this matter and has said that the LCI wage
adjustments, backdated to 1 July 2021, will be made to mental health and
addiction support workers as soon as their employer is able to do so.
Support workers will then be paid the new rates on an ongoing basis.

Thank you for writing, we hope this response has been helpful and wish you
the best.

Ngā mihi,

 

Charlotte

 

Principal Policy Advisor, Employment Relations Policy

Workplace, Relations and Safety Policy Branch

Labour, Science and Enterprise Group

Ministry of Business, Innovation & Employment

[1][email address] | Telephone: 04 901-2009  | DDI:
42009

Level 3, 15 Stout Street, Wellington, PO Box 1473, Wellington 6140, New
Zealand

 

[2]www.govt.nz - your guide to finding and using New Zealand government
services

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Any opinions expressed in this message are not necessarily those of the
Ministry of Business, Innovation and Employment. This message and any
files transmitted with it are confidential and solely for the use of the
intended recipient. If you are not the intended recipient or the person
responsible for delivery to the intended recipient, be advised that you
have received this message in error and that any use is strictly
prohibited. Please contact the sender and delete the message and any
attachment from your computer.

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