Photo: RNZ / Samuel Rillstone
The government has announced a pay equity deal for community-based social workers expected to benefit 4600 employees.
It brings pay rates for community-based social services to the level of Oranga Tamariki social workers after the government reached a settlement with them in 2018.
However, it is unclear how much it will all cost.
The 2018 settlement - worth $114.6 million over five years - was based on the historical undervaluation of social workers, as a workforce largely staffed by women.
About 84 percent of the total social work workforce are women, and Māori and Pacific people also make up a high proportion.
It was expected to bring an average 30 percent increase in pay for about 1300 Oranga Tamariki social workers, but this lifted their pay about 18 to 20 percent above that of their colleagues in other areas.
Before today's deal, community and iwi social workers were being paid an average of $28.51 an hour, below the median wage.
Today's move extends the pay boost to all community and iwi organisations who employ social workers and receive funding from the Crown.
The PSA union in October also won a settlement for five iwi and non-government social service employers, amounting to about 500 workers, but the deal announced today would extend the roughly $20,000 to $30,000 pay bump to another estimated 4600 workers.
A Cabinet paper released today alongside the decision noted the "work required to implement the extension will be considerable" and would require data about contracts in the funded sector.
It said funding agencies would be unable to absorb all the costs of the increased funding, but any details about how that would be fixed or how expensive it would be were redacted.
Announcing the deal this morning, Minister for Women Jan Tinetti said it would mean fair pay for thousands more social workers, and would no longer require providers to lodge separate claims.
"The extension is the first under the Framework for Oversight and Support of pay equity claims in the funded sector and will represent real and significant change for our valuable and hardworking community social workers," she said.
Social Service Providers Aotearoa chief executive Claire Achmad said it was a major win for social workers and would make a tangible difference to tauwhiro working with rangatahi and whānau.
"The decisions sends a strong message that the essential mahi of social work is valued and recognised," she said.
PSA delegate and social worker Stephanie Brown, from Dunedin, said it would be "life-changing".
"I'll be able to afford things that have been out of reach, like double glazing to keep warm in winter," she said.
"Social work is hard, but decent salaries mean we can do better at retaining staff and attracting good people."
Minister for Social Development and Employment Carmel Sepuloni said it was another step in the right direction.
"This pay equity agreement recognises social workers right across the system and shows that the work they are doing is important, valued and deserves pay equity. It will also have a positive impact on the sector's ability to retain staff as well as provide certainty for new staff members and trainees," she said.
Tinetti also acknowledged the work of the PSA and its members.
The government said more than 105,000 people total had received a pay correction as a result of a pay equity claim since 2017.
