Gisborne TLab strike: Pay parity demands deemed uneconomic by NZ Pathology

Private sector medical lab owners say they cannot afford to match the pay parity settlement Health NZ made with their staff in 2023. The 30% wage difference has led to private lab workers, including at Gisborne's TLab, going on strike. Photo / Mike Scott

The aim of an Apex union strike – pay parity with Health New Zealand Te Whatu Ora public sector medical lab workers – is uneconomic, says NZ Pathology, the industry body for private pathology providers.

Private-sector lab workers are staging a series of rolling strikes this week, except for TLab union members in Gisborne, who are striking for seven days to Friday.

“Our members are negotiating with Apex [the union for allied, scientific and technical employees] in good faith and we continue to work with government on resolving this dispute,” NZ Pathology chief executive Dr Peter Gootjes said.

The issue arose when Health NZ agreed to a pay equity settlement with public sector lab workers in 2023, he said. This created an approximately 30% pay gap with their private-sector colleagues, who undertake the same kind of work.

“Apex’s pay claim seeks to make up this gap. However, the amount is simply uneconomic for providers to meet,” Gootjes said.

“The problem is that private laboratories are almost entirely funded by long-run, bulk-funded contracts with Health NZ that pre-date the settlement and don’t allow for big increases in wage costs.

“Providers simply cannot absorb this level of otherwise-unforeseen increase.

“We remain constructively engaged with Health NZ on the contractual issue and have also sought a meeting with Minister of Health Simeon Brown to brief him on the short- and long-term implications of these strikes.

“Our goal is to find a win-win solution whereby New Zealanders can continue to receive quality, efficient pathology services when they need them.”

Life-preserving services will be unaffected during the strikes.