Sleepover Wages (Settlement) Bill

Hon KATE WILKINSON (Minister of Labour) Link to this

That the Sleepover Wages (Settlement) Bill be now read a first time. At the appropriate time I intend to move that the Sleepover Wages (Settlement) Bill be considered by the Health Committee, that the committee report finally to the House on or before 3 October 2011, and that the committee have authority to meet tomorrow and at any time while the House is sitting except during oral questions, and during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 187 and 190(1)(b) and (c).

The bill resolves a court dispute that dates from 2007, and addresses recent decisions made by the Court of Appeal and the Employment Court in relation to IDEA Services Ltd and Phillip William Dickson. The bill sets in place a responsible and sustainable framework to remedy the sleepovers issue between Crown-funded employers and their employees. Specifically, the bill will implement a settlement agreement between the Crown, IDEA Services Ltd, Tīmata Hou Ltd, and the Service and Food Workers Union for the payment of wages to their employees who are employed to sleep overnight at their workplace whilst on duty. The settlement agreement includes the payment of back-pay for certain sleepovers, and the staged progression of payments for sleepovers towards the hourly rate under the Minimum Wage Act 1983.

The Crown has negotiated this settlement in good faith with employers and employee representatives, and I acknowledge all parties involved. It is a fair settlement, and one that balances the interests of employers, employees, and the Government. For the Government, it ensures that services continue to be delivered to this vulnerable group of people, and it allows the effective management of fiscal risk. For employees, it provides for significant back wages to be paid to those who are eligible, and for a graduated movement to the minimum wage for sleepovers. For employers, it enables them to continue operating, while also requiring them to contribute to the back wages that are payable.

In addition to implementing the settlement between the Crown, IDEA Services Ltd, Tīmata Hou Ltd, and the Service and Food Workers Union, the bill also establishes a framework for the settlement of other sleepovers for other health and disability employers funded through Vote Health, and potentially for other employers funded by the Crown. This will be done through an Order in Council mechanism. The Government is committing $27.5 million to assist Crown-funded employers in the health and disability sector to settle valid back-wage claims, and up to $90 million over 3 years to support employers to phase in the minimum wage. This will enable vital services to continue to be delivered in an affordable manner, whilst securing the phasing in of the minimum wage for employees. Under the bill there are strong incentives for health and disability - funded employers to reach a settlement, because they will become eligible for contributory funding from the Crown to reduce backdated liabilities and to support the phasing in of the minimum wage. Eligible employees stand to gain access to back wages that the employer may not otherwise have been able to fund, and they will enjoy more certain access to higher future wages.

This bill is a priority for this Government. It is important legislation that will ensure that some of the most vulnerable people continue to receive quality care in our community. The bill has been consulted on within the sector and has the support of the parties to the agreement. Passing the bill before the House rises will mean that eligible IDEA Services employees will be able to receive their back-pay before Christmas. I am pleased to be able to present this bill here today, and I commend it to the House.

DARIEN FENTON (Labour) Link to this

I am very pleased to support the Sleepover Wages (Settlement) Bill, of which I have only just seen a copy. I will start my contribution tonight by honouring the hard work and commitment of the workers in this sector, including those of the Service and Food Workers Union, Ngā Ringa Tōtā, who, along with the Public Service Association, have pursued this matter over 4 years and through three court cases and the recent threat of a Supreme Court appeal. I also acknowledge Phil Dickson, the IDEA Services worker, who, along with his union, has tested the provision in law that relates to his being paid as little as $3.77 an hour for sleeping overnight on the premises of his employer. I know the work of people like Phil Dickson; I represented them in the past before I became an MP. My sister, in fact, is one of them. She works for IDEA Services. I know the dedication they have and the efforts they go to in order to help the people to whom we as a society have decided to give a fair go. I am talking about Phil Dickson and thousands of other workers who work as disability support workers, who sleep on the premises but are frequently woken and disturbed, and, as numerous courts have said, who have significant and weighty responsibilities in caring for our most vulnerable citizens.

Labour has long advocated for the rights of disability support workers to be paid fairly, not only during the day but throughout the night when they are required to be alert and responsive to the complex needs of those in their care. For far too long they have been expected to work at night for less than the minimum wage. As a society, we have determined that those who have intellectual and mental disabilities should, as far as possible, live in our communities. I think that that is the right approach, and I think that the Government agrees with that. In saying that, I acknowledge tonight Ros Noonan, the outgoing Chief Human Rights Commissioner, whom we farewelled tonight. She has been staunch in her support for the rights of those with disabilities and for the importance of the Government providing support for those people.

I am pleased that Parliament appears to have reached agreement on this long-running dispute, and I give credit to the unions that this is happening. If they had not pushed, if they had not persisted, this bill would not be here before us tonight.

The truth is that what we are doing tonight is advocating a settlement at the 11th hour of the 2008 Parliament. We urged Tony Ryall way back to negotiate with the unions involved because we always knew that the unions involved would be reasonable and fair, and, actually, they have been. If we look at the settlement, we see that they have been extremely reasonable and fair. It is a shame that they have had to wait so long.

I am pleased that this bill represents a negotiated settlement and that the Government intends to pass this legislation before the House rises at the end of next week, so that these workers, who have been waiting a very long time, can get their back-pay. I am also pleased that the Government has heeded the call from unions and Labour that this matter be put to rest. These workers should get their back-pay before Christmas and they should start on the path to getting the minimum wage.

It is a significant concession from the unions involved. They have agreed to forgo the entitlement that three courts have said were theirs—that is, the basic right to be paid the minimum wage for all hours worked, including so-called sleepovers. I find it fairly ironical that the Government has sacrificed other minimum rights for workers, introducing the 90-day trial period, without those workers having the right to ask why and challenge that decision. Yet here we are accepting, finally, that Phil Dickson and his workmates have been prepared to negotiate in good faith and, as this bill reveals, make concessions. It is a shame also that this Government put them through unnecessary battles. It is unworthy that we have a Government that tries to pretend that it cares about the most vulnerable in our society and those who are employed to care for them.

In 2010 the Minister was still considering whether to change the Minimum Wage Act along the lines that were being run in court at the time. In the court at the time the Government joined with IHC to argue that the minimum wage should apply as an average across a working week or fortnight. That could have meant that multitudes of New Zealand workers would find themselves disadvantaged. When we tried to find out information about that, the Government blocked all requests. Through earlier Official Information Act requests we asked the Minister of Labour for more information about it, but she withheld 10 documents in full, including Cabinet papers. That meant that a whole range of wage and salary workers could not find out exactly what was being considered. So when the Court of Appeal decision came through recently, Labour called for the Government to meet with stakeholders a bit earlier in the year. We called on the Government to meet with stakeholders in the disability support sector, including the union, to negotiate a durable and long-term solution. That was in February this year, I think, so here we are on the eve of Parliament rising—we are finally getting around to it—and finally the Government has agreed. I acknowledge that this bill represents countless hours and sacrifices in pay and justice by a category of workers who work caring for the most vulnerable in our community.

While this has been going on there has been the most bizarre stuff happening as well in this industry. It is no wonder that it has been hard for IHC and other disability support providers to find New Zealand workers who are prepared to work for $3.77 an hour, which is what these workers are being paid. I have met many overseas workers who have come to me—and I am sure they have been to other MPs—to say that they are doing this work, to ask why they cannot continue to do the work, and to ask for a work permit, and so on. But the Government, on the one hand, has continued to insist that those workers, because there was a court case, must be paid minimum wage but at the same time has denied that minimum wage to its own workers. So I found that really interesting and also very difficult. The industry is so low-paid—and I think we are seeing a plan from the Government to fill up all the caring industries with overseas workers, because they are prepared to do work that New Zealanders will not do—and I think that is a real pity. I am not saying that those workers were any less committed than New Zealand workers, but they got sent home while the Department of Labour and the Attorney-General continued to argue during the stand-off that we have had for several years on this issue. The Attorney-General joined the Court of Appeal’s decision to argue that IDEA Services was complying with the Minimum Wage Act, because the Minimum Wage Act enabled averaging. So we had a bizarre situation where one arm of the Department of Labour was arguing about the Minimum Wage Act and the other arm of the Department of Labour, concerning immigration, was saying something different.

There was a long period where the Government did nothing. I think that it is shameful that IHC was forced to waste hundreds of thousands of dollars on a fruitless legal quest. The Government wasted money as well by joining those various court appeals to argue that what they finally agreed was right was wrong at the time. I think it thought that the disability support workers would give up. They did not—and good on them. It was really awful in July when the Minister of Health attacked workers, saying that because of a legal technicality they were now expecting to be paid the minimum wage for sleeping, and retrospectively paid from that point. Then he went on to lecture the unions about the country borrowing millions and how the Government could not afford it.

This bill is a triumph. We support it. We are glad that it is going to a select committee. The sooner it gets back to the House, the better. These workers deserve their back-pay. They have made a significant concession. Let us face it: they have accepted half of the back-pay, and it will take to 2013 to get paid the minimum wage. It is a shame that it has taken years to get there, but Labour is supporting it because it is time for these workers to be paid their just desserts.

Dr PAUL HUTCHISON (National—Hunua) Link to this

It is a pleasure to speak on the Sleepover Wages (Settlement) Bill. This bill is about the National Government seeking and finding a practical solution to ensure that caregivers for the disabled who sleep overnight are reasonably compensated for their work. The National Government has worked extremely hard and well with IDEA Services, Tīmata Hou, and the Service and Foodworkers Union to ensure that this will happen. It is a win-win solution for the caregivers, for their union, and for the taxpayers and their Government. Added to that, the caregivers will receive due back-pay prior to Christmas, and by July 2013 minimum wages will have been phased in.

Darien Fenton can certainly not claim the high ground on this issue. For 9 long years these workers have been under those conditions, but it was not until 2007 that the initial court case was taken. In many respects the disability sector is a Cinderella part of society. It is one of our most vulnerable parts, and often its advocacy powers are not as strong as many others. I think we should all recognise this. It is not a great situation for the sector to be in.

There are in the order of 30,000 or more caregivers around New Zealand. I understand there are about 3,700 caregivers in this particular group who are involved in sleepovers. It was the Levin disability worker who sparked the 4-year legal battle over pay. Mr Phillip William Dickson is to be admired for his tenacity and courage. About 6 months ago in my electorate I had about 10 workers come to me. They pointed out just how arduous and how challenging their jobs can be, with separation from their families overnight; at times there are highly complex cases without back-up; and, of course, at times they assist with toileting, etc.

I will make one note: Mr Paul Quinn has up in the gallery one of his constituents, a caregiver who came to him. I must say that it is through their continuous and determined efforts that we finally have arrived at this bill tonight, which has sought a practical solution. I am very glad to say that the bill will be at a select committee tomorrow. We will hopefully be hearing submissions and we will bring it back to the House next week.

GRANT ROBERTSON (Labour—Wellington Central) Link to this

I am pleased to rise to support the Sleepover Wages (Settlement) Bill, because, as my colleague Darien Fenton said, this bill is about a group of vulnerable workers, who look after vulnerable people, getting a fair deal. It is a fair deal that has been a long time coming. It has been a very long time coming.

I pay tribute to all of the workers—all 30,000 of them—around this country who provide support in our communities for some of the most vulnerable people in our communities. This is the kind of work that gives people dignity and respect in their lives, and we owe dignity and respect to the people who deliver these services and to the people who receive these services. Finally, tonight we are making some progress on getting there. I pay tribute to Phil Dickson, in whose name the case was taken. I also pay tribute to the other workers, whom I also met along with many other MPs, who told me about the work that they do.

I have always felt that it was wrong in many ways to call this a sleepover case, because actually a sleepover sounds like the kind of thing that Paul Quinn does when he goes to Simon Bridges’ house at the weekend, and they have a slumber party and a sleepover. Well, that is not what this is at all; this is work. These are people going to work who deserve to be paid fairly for being at work. There is no way that being paid the equivalent of $3.77 an hour, which is the situation as it stands today, is fair pay for the work that is being done. It is not a sleepover; it is people being interrupted in the middle of the night to toilet, to turn people over, to actually be there as carers. These people are providing a lifeline. They are providing dignity, they are providing respect, and they are at work. And that is why they deserve to be paid the minimum wage. In fact, in my opinion, I would like to see care workers and community support workers in New Zealand paid a lot more than the minimum wage if we can make that happen, because they play such an important part in making sure that vulnerable people and elderly New Zealanders get the support and care that they need. They are an important part of what gives our society some morality, in terms of how we look after people who are in their old age or are vulnerable.

In addition to paying tribute to Phil Dickson and the other community support workers, I pay tribute to the Service and Food Workers Union, which is the union from which Darien Fenton came before she came to Parliament. I pay tribute to them because it is their stickability that has meant this case has gone through. This is a triumph for unions. This is a triumph for collective action in the workplace. It is the actions and the stickability of the Service and Food Workers Union that means this is here tonight. It is not Dr Hutchison who should be taking credit; it is the Service and Food Workers Union and the workers it represents who take the credit for tonight. They stuck at it as the Government pushed through the Court of Appeal—it appealed again and again—to stop people getting what they deserve, to stop people getting fair wages for a fair night’s pay.

So the people who are to be congratulated here are the workers and their union, and it shows to me that in New Zealand society strong unions are important, because in this case strong unions have delivered to us good outcomes. It is a good outcome for these workers. It is the workers and the unions who have done that. On this side of the House we are proud that we stand up every single day for the rights of working people and for unions. That is what we do on this side of the House

On the other side of the House, Government members denigrate unions on a daily basis. We sat in this House and heard people on that side of the House call unions “Hobbit haters”. Well, tonight I want to hear from some National MPs some congratulations to the Service and Food Workers Union on standing up for their members, on standing up for what was right, rather than the usual diatribe we get from National that unions are the harbingers of evil. Well this is proof positive tonight that in this House we can stand up and support unions for what they have done, to make sure that workers get a fair deal, that workers get fair pay for their work.

I am proud to support this bill. I am proud to say that at the end of this process, people who look after some of the most vulnerable people in our community will be paid fairly. When Labour is elected to Government, they will be getting $15 an hour, not just $13 an hour, and that will be a great step forward for them. I look forward to seeing this bill come to the Health Committee. We know that at the end of this we will make sure that people who have looked after the vulnerable members of our community get some back-pay—as Darien Fenton said, it is not as much as they might have liked, but it is a good amount of back-pay—and some certainty going forward that they get fair pay. That is the right thing to do.

CATHERINE DELAHUNTY (Green) Link to this

Tēnā koe, Mr Deputy Speaker. Tēnā koutou e te Whare. The Green Party is very happy to support the passage of the Sleepover Wages (Settlement) Bill. We congratulate the Service and Food Workers Union—Ngā Ringa Tōtā—in particular, the Public Service Association (PSA), and Mr Phillip William Dickson on their perseverance in a just cause. We also acknowledge the Government for finally making an agreement that may not be perfect but does address the two fundamental issues of back-pay and a process towards the minimum wage for these workers.

The Green Party would be a lot happier if the minimum wage payment started now rather than being phased in by 25 December 2012, but we recognise that a deal has been struck and that this legislation will facilitate the back-pay to 30,000 workers who badly need it before this Christmas. The Green Party understands why the Government needed to intervene and assist with the back-pay. This has been a longstanding, anomalous injustice that may have overwhelmed IDEA Services if it had to pay back the full pay and the minimum wage immediately.

But how on earth was it possible that people at work were not being paid the minimum wage for so many years? Did this happen to the firefighters, ambulance officers, and resident doctors who also have to sleep over, as it is called? Of course not. The reason this was allowed to happen is not pretty. It reflects the values of a society that is rife with prejudice against people with disabilities and towards carers as a profession. It is treated as a low-status job, working with even lower-status people who need and receive skilled and practical support that has been barely valued.

When I read what the job involved, it sounded suspiciously like what was once called “women’s work”—all that meal provision, bathing, clothing residents, doctors’ appointments, personal care, and all that hard, sensitive, intelligent, and often physical work. The sleepover, as Grant Robertson has just said, was not popcorn; it was about being exploited for doing something important; something that I doubt most people in this House could do. And at night the job does not stop. People with a range of disabilities or mental health issues need supervision, medication, and support 24 hours a day. That is their human right.

I would like to see people like myself cope with the complexity of this work 24 hours a day for less than the minimum wage for half of the time. And less than the minimum wage was $3.77 an hour—pocket money, tokenism, and an insult to both their work and their responsibilities. And this is for the vital care of citizens whose human rights require us to make sure they have an independent life. So thanks to the advocacy and determination of the unions since 2007 and two legal decisions by the Employment Relations Authority and the Court of Appeal, the legal justification for not paying sleepover workers the minimum wage disappeared.

The Green Party is happy to see the Government doing the right thing by the Court of Appeal judgment, unlike with the other piece of legislation we have had before the House where the Government is seeking to undermine the Supreme Court judgment in the video surveillance monitoring debacle. So now the 5,000 cases filed by the Service and Food Workers Union and the PSA can be properly addressed.

This law creates a staged progression towards full compliance with the Minimum Wage Act 1983. It has a formula for this progression, which starts at 50 percent of the minimum wage from now until 30 June 2012; 75 percent from 1 July 2012 to 24 December 2012; and 100 percent of the minimum wage from 25 December 2012 to 30 June 2013. Then an employer must pay an employee for each hour of the sleepover performed by the employee at not less than the rate of the minimum hourly wage rate under the Minimum Wage Act—and that will be about time.

The Green Party believes we should lift the minimum wage to $15 an hour immediately, and then make it two-thirds of the average wage within 4 years, and it would be great if these workers who have already been discriminated against could have the benefit of a lift in the minimum wage right now. The back-pay for these workers who have performed sleepover, as it is called, for the last 6 years has been calculated by a formula described in the bill as (((a × 9) - b) + c) × 0.50 = d. What does it actually mean? I have absolutely no idea. It is interesting to read it in the bill because one wonders who made it up. Is it to help people understand the issues?

I have no idea what on earth that formula means in mathematical terms, but I do have faith that if the Service and Food Workers Union, the PSA, and the workers agree that it is a reasonable way to calculate the back-pay under the current constraints they are working with, in a very conciliatory and practical way, then the Greens will not disagree with them about this incomprehensible formula that the Government has written into this necessary legislation.

Sometimes there is really no good excuse for an employer or the Ministry of Health to keep behaving badly. Even though it will cost money—as in $27.5 million back-pay and up to $90 million in lifting up the wages to the minimum wage over time, and it is far too much time, in my view—they cannot sustain the pretence, failed argument, or denial that what people are doing is actually work.

It pains me that the resistance of IDEA Services and the Crown has wasted money in the court that was badly needed to pay these people the minimum wage now. I do not see this work as minimum wage work. It is far too hard, it is far too demanding, and it is far too skilled. Any job that involves nights away from home is hard work, but it is especially hard work when one has broken sleep, responsibility for vulnerable people in unpredictable circumstances, and disruptions to family life under those circumstances. None of that is yet remotely acknowledged or compensated for by the Court of Appeal settlement or this bill. We have just got to first base. I am hopeful that we can do a whole lot better than just get to first base in our treatment of workers in the next Parliament, should we be lucky enough to be there.

Really, I celebrate the achievement, but there are so many caveats, These people are still not getting the deal they should be getting. We first have to acknowledge that these people have been working all the time. We then need to pay them what they are worth and pay them back what they were worth. None of that will happen. Eventually, they will get the minimum wage. If members have spent any time with people in residential care who are vulnerable, they will know how complex the job is for those workers.

If one has family members who are cared for by workers who have this kind of job and give that kind of support—as I have—it is somewhat obscene to know that the minimum wage is all they will get paid. National members stand here in this House and say that eventually those workers will get the minimum wage. Well, whoopee! We know what the minimum wage will cover these days. It will not cover those workers’ costs, it will not cover their living expenses, and it will not cover the dedication of these workers to the communities who have a right to residential care and independence. They also need to be respected, as do the workers.

I believe that the lack of respect for persons with disabilities and the lack of respect for carers is perhaps one of the most obscene aspects of the 21st century in this country. We are still fighting for recognition that caring for people is actually as valuable, if not more valuable, than being a banker and giving oneself a big fat bonus for playing with other people’s money. That is what this should be about—recognising the people with the skill and capacity to care for others. I think Rodney Hide told me that those who do special education work are saints and that they do not need a pay rise. I do not believe that saints do not eat. I do not even think these people would appreciate being called saints. They would like to be called workers who are entitled to a wage that reflects the capacity that they show in looking after people in the community whom we need help to support.

Let this be the beginning of an uplifting of their role, their money, their back-pay, and all the rest of it. I am glad we have got here. I am glad we have got here before Christmas. It is really, really important that these people wait no longer. This bill is a good reason for urgency. Unlike the Video Camera Surveillance (Temporary Measures) Bill, which is a shame, a disgrace, and an abuse of power, this is a good reason for urgency. It is urgent. Justice is urgent, so let us have justice. Thank you very much.

TE URUROA FLAVELL (Māori Party—Waiariki) Link to this

Tēnā koe, Mr Deputy Speaker, kia ora tātou katoa. Mō taku hē, mō taku hē, ina tata nei i a au e kōrero ana mō tērā atu pire, i kite atu i te kāhui ariki, a Nanaia Mahuta, i wareware i a au ki te tuku mihi ki a ia mō te āhuatanga o tērā o ngā pāpā, a Whatumoana, kua riro ki tua o te pae o maumahara. Nō reira, ahakoa kāre a ia i konei i tēnei wā, ka nui te aroha ki a ia. Ko ia tērā e noho nei i raro i te kapua pōuri mō tōna pāpā, otirā, te pāpā o te Kīngi Māori, a Kīngi Tūheitia, o Tainui Waka tonu, o te iwi Māori tonu. Nō reira waiho ia kia okioki, kia moe. Anei tātou i tēnei pō te hunga ora huri noa i tō tātou Whare, tēnā koutou, kia ora tātou katoa.

[Thank you, Mr Deputy Speaker, and greetings to us all. About my oversight and fault while addressing the other bill just a moment ago: I noted the presence of the aristocrat the Hon Nanaia Mahuta while I was doing that, but forgot to express my condolences to her in regard to that father of all fathers, Whatumoana Paki, who has departed beyond the horizon of remembrance. And although she is not amongst us at this moment, there is much sympathy for her. She is the one under a cloud of remorse for her fatherly figure, and indeed the fatherly figure of the Māori King, King Tūheitia, the Tainui Canoe, and indeed the Māori people. Allow him to rest and sleep there. So salutations and greetings to us, the living, throughout our House tonight.]

The Māori Party is proud to support the Sleepover Wages (Settlement) Bill as an important recognition of the vital work that is done in supporting some of our most vulnerable people. As a bottom line, we say it will ensure that people will continue to receive quality care overnight, while at the same time help to ensure a better future for those who work sleepovers.

As others have said, the bill arises out of the finding of the Court of Appeal that sleepover care and disability support services are work, for the purposes of the Minimum Wage Act, and that the minimum wage should be payable for each and every hour that sleepovers are worked. Although this is a recent decision, the issue of how we appropriately recognise the value of support offered by those who work sleepovers dates back a few years, of course. Although many of us sleep through the night, those compassionate, committed caregivers are on hand to look after those who need it most. It is not easy work, I am sure, and it is often really demanding.

I come to the bill with some personal experience about this particular issue, in the sense that I had responsibility for my late sister, Hine, who passed away some 4 years ago. In the Māori world view, at least, we are influenced and inspired by fundamental values, which we call kaupapa tuku iho. These are values that are often expressed by the Māori Party in this House—manaakitanga, the generosity of spirit towards others; whanaungatanga, the care and welfare of whānau; and kaitiakitanga, the care and protection of our most precious resource, in this case our people.

I saw these values being demonstrated in our own home, in the protection of my sister Hine. Towards the last years of her life my sister battled. I think she had about three strokes and came through all of them, but it became too much of a burden at the end. I think she lived with what health professionals might call “compromised health”. My wife Erana took responsibility for her day-to-day care, while I was sometimes involved in Parliament. Although my intentions were to help out, to all intents and purposes it was my wife who was there for my sister during the long nights when she was unwell and when her needs seemed uppermost in all of our minds.

So I understand just how important the work of carers is in allowing people to live the independent lives they might not otherwise be able to. We fully support the commitment of those who work the sleepover shifts to be paid the minimum wage, rather than a $34 shift allowance. We place immense responsibility with these people to care for the people they look after and to deal with any problems that arise, and we should pay them accordingly.

In preparing for this debate the Māori Party approached a number of key stakeholders in the disability support area for their advice and guidance on this bill. We thank them all for responding so graciously, despite the fact that we are under urgency. One of the insights we gained was from a woman named Tania Kingi, the group manager of Te Roopū Waiora Trust, who told us she was in favour of the decision to pay kaimahi support payments, because it was the fair and just thing to do. She said they should never have been underpaid in the first instance. She raised a point that I thought was really interesting, and I would be keen to hear the views of others on this issue, even if we understand that it is such a truncated process and we are reducing the select committee process to only a few days. Mrs Kingi provided us with the following comment: “Another reason that paying a real wage for sleepover support workers is important is the different needs to the different parts of the disability sector. The needs of a tetraplegic are as different to the needs of a paraplegic as the needs of an able-bodied person are to a paraplegic, yet that difference is not recognised.” She continued: “I can remember a particular case where a tetraplegic man was not getting adequate care because the funding was not in place for him to pay for two 4-hour shift workers. Instead, he was forced to hire one person for an 8-hour shift.” She wrapped it up by saying: “What happened? The worker kept falling asleep, and the man was not able to be rolled over during the night, which resulted in breathing difficulties. Proper funding is important.” She finished her statement there. I thought that was a really interesting comment about whether the higher wages that will be paid to those who take on a sleepover role will also take into account a different rate of pay for the different needs of care.

Another view put forward by Mrs Kingi was that we need to consider whether the cost of extra wages will come at the expense of whānau involvement. That brings us to another very significant issue—that is, being able to recognise the important work that whānau caregivers—family carers—do as carers of their loved ones, and whether the Government will be prepared to resource that appropriately. The Ministry of Health has a view that whānau are not eligible for carer payments, and I think we need to take a critical look at this particular policy if we are really committed towards whānau ora. It would seem to me entirely contradictory that on one hand we want to reduce reliance on the State and increase whānau self-development and independence, yet on the other hand we refuse to give them the resources they need to do the job.

In the whānau ora world we need to both respect and resource appropriately our Māori and Pasifika whānau who have a cultural obligation to care for their own. They are doing so, and have done so forever, without being resourced. As I explained, that was the nature of our commitment as a whānau to looking after my sister. This issue needs serious consideration, and that, again, has been a part of the many submissions that we have received.

Finally, I congratulate the Minister of Health and also my colleague the Minister for Disability Issues, Tariana Turia, on the brave step forward they have taken today in bringing this bill to the House. I have come to understand from my reading around this bill that an approximately $150 million settlement between IHC, the Government, and unions will benefit some 3,700 disability support workers. The incremental movement from 50 percent of the minimum wage, about $60 a sleepover, gradually increasing to the full minimum wage by July 2013, will allow both the Government and the providers sufficient lead-in time to allocate the appropriate resources. We agree with the Ministers that this represents steady progress towards recognising and bridging the gap and at least coming towards some full recompense. We are pleased to support this bill.

Dr JACKIE BLUE (National) Link to this

I am very pleased to take a short call on the first reading of the Sleepover Wages (Settlement) Bill. The issue came into the spotlight early this year when the Court of Appeal upheld the Employment Court decision that disability support workers should be paid the minimum wage for sleepover shifts.

The issue had its origins in 2007 when a claim was lodged by an employee of IDEA Services—which is owned by IHC—with the Employment Relations Authority regarding payment for sleepovers. In July 2009 the Employment Court ruled that sleep constituted work, and that the minimum wage should be applied for each and every hour of work. The Court of Appeal upheld the decision earlier this year.

This decision from the Court of Appeal is extremely significant for public health services and it is important that the issue is resolved for people with disabilities and their families. Providing quality support is a priority for this Government, and it is crucial that the issue was resolved to the satisfaction of everyone. It has been a top priority. This new legislation supports the agreement to bring sleepover wages up to the minimum wage. The practice of workers being paid just the standard rate while sleeping will no longer apply. I commend this bill to the House.

CARMEL SEPULONI (Labour) Link to this

I really want to refer back to Te Ururoa Flavell’s speech on the Sleepover Wages (Settlement) Bill. I enjoyed his words; there were words of compassion for those who require the carers and for those who are in the workforce. But I have to ask where the Māori Party was when the picket lines were out there. Where was the Māori Party when the discussions were taking place between the workers and the unions? Where was the Māori Party when the issue was going through the courts? There was silence from the Māori Party. We heard Mr Flavell congratulate Tariana Turia, who is supposed to be our Minister for Disability Issues, but unfortunately we heard nothing from her on this very important issue.

As Labour’s spokesperson on disability issues, it gives me great pleasure to speak on a bill that Labour indeed supports. National has dragged its heels, along with its coalition partners the Māori Party and the ACT Party, on this payout for far too long, and now, unless it is treated with urgency, disability support workers may need to wait until next year for much-needed compensation. We applaud the workers and unions in the sector for the persistence and patience—incredible patience—that they have exhibited, which has led to this court ruling and subsequent Government payout. I call the Māori Party out on this matter. Having done work on the non-regulated health workforce, I know that a lot of these carers are Māori, are Pacific, and are new migrants, and many of them are women. They are women who have families to look after and women who are on the minimum wage, and in this case they are not even on the minimum wage. They are women who are attempting to look after their families, but who are unable to do so because they are paid so poorly. So I do call the Māori Party out on this matter. It should have been much more vocal at the time when this case was going through, rather than waiting until now, when the fight has finally been won.

Labour supports this bill, as it provides disability support workers with fair pay and compensation for the essential services they provide to the most vulnerable people in our communities. The settlement reached will entitle disability workers in New Zealand to the full minimum wage for sleepover work, compared with $3.77 an hour at present—$3.77 at present. Looking at that rate of pay, I say it is no wonder that this ruling has been upheld by the courts whilst the National Government unnecessarily continued to stall the process of reaching a just outcome. The abysmal rates of pay for sleepover claimants mean that of those seeking compensation, many will receive between $7,000 and $10,000 in back-pay for sleepover work carried out in the last 5 years. That money will mean a lot to those workers. To many people in the House tonight that is not a lot of money, but to these particular workers it is a lot of money. It will mean not only a lot to them but also a lot to their families.

Labour applauds the workers and unions in the sector for their persistence and patience, which has led to the ruling that sleepovers are work. As my colleague Mr Grant Robertson said earlier, it really is not accurate to describe this as a sleepover, when at any time during the night these workers can be called upon to have to assist in some way or another. They have to have one eye open while they are undertaking this work, and there is a sense of responsibility and accountability—a high level of responsibility and accountability—shown by these workers.

We support ensuring that all working New Zealanders receive a fair working wage, and this settlement will rectify the situation that these workers have found themselves in for now. What we do need to look at is actually increasing the minimum wage, so that they are not on an abysmal $13 an hour and they can actually go up to at least a $15 an hour minimum wage—and Labour has promised that it will do that. Not only is a commitment to fair pay a boost for workers but it will provide people with disabilities and their families with the assurance that they will keep receiving good quality care from qualified and experienced staff—a repercussion that the Government seemed to neglect when calculating the cost of stalling. I have met with a number of people and organisations impacted by the Government’s inaction, and I can say this bill will help to ease their extreme anxiousness and fear surrounding the care of their children and the retention of quality workers in the disability sector.

As I said before, the Government has already dragged its heels on the settlement for far too long and wasted valuable time and resources on fighting workers’ claims in both the Court of Appeal and the Supreme Court. It was fighting their claims, fighting just claims. Just a year ago Tony Ryall was ruling out any back-pay for workers, stating that the liability rested with the employer. Tony Ryall’s former excuse that a settlement would cost the Government $500 million has been shown to have been scaremongering, as the compromise settlement is costing the Government a reasonable $120 million. [Interruption] Absolutely, as Darien Fenton has said, that is only because the workers and the unions are being reasonable. The Government was willing to pull out all the stops for multinational Warner Bros, so why was it so reluctant to give workers fair pay for a fair day’s work?

We are grateful that National has finally heeded Labour’s call to treat this legislation with urgency and pass it before the House rises. This sector does essential work for our most vulnerable citizens, and the way in which we treat our disability support workers reflects the value that the National Government places on those whom they care for. The Government’s reluctance to properly pay health and disability workers for the essential services they provide is symptomatic of the wider underfunding of the health sector. Although a compromise has now been negotiated, it is more in line with National’s interests in election year than it is with the needs of disability support workers. Thank you.

NICKY WAGNER (National) Link to this

I am very pleased to support the Sleepover Wages (Settlement) Bill at its first reading. This has been a very controversial issue for several years, and it is very good that we finally have a solution.

I have met with many of these workers who will be affected by this bill, and from the descriptions of their work I can say only that this payment is well-deserved. This solution will ensure that people with disabilities are provided with the best-quality support at all times, day and night.

It would have been impossible for providers to pay these amounts without Government support. Under this agreement the Government will pay $90 million over 3 years towards a phase-in of the minimum wage, and $27.5 million toward the back-pay liabilities of the providers. But IDEA Services and other providers are also putting in money to contribute to the backdated liabilities.

This bill relates only to the agreement between IDEA Services and Tīmata Hou Services, a subsidiary of IDEA Services. They are the main providers of these services. The rest of the providers can access the framework of the bill, including the back-pay and the progression to minimum pay process, but only through an Order in Council. Other providers have a maximum of 5 years to take up the settlement offered in the framework, but the bill extinguishes any further claims. It is a full and final settlement.

I know that the workers I have met were extremely frustrated that this issue has dragged on since 2007 under Labour, and they will be delighted with this outcome. Health and disability support workers have a tough job, and from what I see, many of them love their job, are devoted to the people they care for, and really go the extra mile. We want to keep these dedicated workers in the system, and this settlement will help.

Hon STEVE CHADWICK (Labour) Link to this

It was interesting to hear the Government take all the praise, cynically, for bringing the Sleepover Wages (Settlement) Bill before the House just before it rises for this term in Government. It will not get this Government any points at all out there with this sector. It has taken 5 years and numerous court cases, which could not be afforded at all, and which wasted money that should have gone into the pockets of the workers—and National claims success for this bill. That is outrageous. To hear the Māori Party say this is a brave move by the Government, when the Māori Party has stood under the skirts of this National Government, which has tried to destroy the workers’ right to receive fair pay for a fair day’s work, was simply disgraceful. That has not escaped the attention of the workers in the sector, either. Where have the Māori Party members been while this battle has gone on for 5 years? Noticeably absent.

I congratulate the Service and Food Workers Union, the PSA, and Phil Dickson, who has taken this issue to court and stayed persistently with the case through several iterations before the courts. They are to be congratulated on getting recognition. The issue is not about the dollar value; it is about getting recognition that those employees work during a sleepover when they are looking after the vulnerable and people with disabilities. We have mentioned that at the moment they get $3.77 per hour. Members of the Government can sit there in the House and say how wonderful they are, when they have given tax breaks to the wealthiest people in this country and ignored these people at the bottom, treating them with absolute disdain. So we are rather cynical about that Government’s support for the workers in the health sector.

This bill takes the workers up to only $13 per hour. We believe the rate should be $15 per hour, and we will bring in a minimum wage of $15 per hour.

Hon KATE WILKINSON (Minister of Labour) Link to this

That the Health Committeeconsider the Sleepover Wages (Settlement) Bill , that the committee report finally to the House on or before 3 October 2011, and that the committee have authority to meet tomorrow and at any time while the House is sitting (except during oral questions), during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 187 and 190(1)(b) and (c).