Pay Jolt? The Impact of the 2004/5 New Zealand Nurses' Employement Agreement

Abstract

This report examines the impact of a national multi- employer collective agreement (MECA) for nurses, hospital midwives and healthcare assistants in New Zealand. The 2004 MECA covering these staff groups employed by District Health Boards (DHBs) marked a significant stage in nurses’ and midwives’ pay determination. One of the management negotiators at the time highlighted the MECA as “good for nursing and very good for the DHB sector…. People will always remember the time when nurses pay got to where it ought to be” (O’Connor, 2005). The chief executive of the New Zealand Nurses Organisation (NZNO) heralded the MECA as a “ground breaking achievement” (Annals, 2005). It achieved pay scales which, it was claimed, would bring the pay of these groups in line with other professional groups with similar skills and responsibilities. The agreement covered a two and a half year term, ending in December 2006.