KEY POINTS:
A $120 million pay deal for 20,000 hospital nurses is expected to be announced today.
It is understood the final of 21 district health boards (DHBs) nationwide is likely to ratify the deal today, giving nurses a pay rise close to 12 per cent over three years.
It follows the $380m Government-funded "pay jolt" in 2004, which awarded 20 per cent pay rises to public hospital nurses.
The New Zealand Nurses' Organisation (NZNO) has been in pay talks with district health boards (DHBs) since March and drew up a provisional settlement in August.
A final response is expected from health boards by midday.
Last-minute concerns were being sounded yesterday by the Canterbury DHB over the cost of the deal and the impact on staffing requirements, but it is understood the board has signed the agreement.
Confidential health board documents leaked to The Press newspaper show the deal would cost Canterbury more than $20m over the next three years, and the country more than $120m. Canterbury's board papers also show a potential "flow-on cost effect" of $53m for the district.
The documents said while the deal involved 45 per cent of DHB staff, it had a "significant impact" on the remaining 55 per cent.
It calculated that to cover the increase in leave and sick leave entitlements the board would have to hire an extra 40 to 170 nurses. It estimated the settlement could require an extra 1400 nurses nationwide.
Yesterday, Canterbury DHB chairman Syd Bradley said the nurses' pay issue carried "massive implications".
He said the board faced a huge dilemma over how to retain nurses - "some of the most important assets we have" - while keeping within the budget.
"This issue is very significant and one of the biggest I have dealt with in my time with the DHB."
NZNO industrial adviser Glenda Alexander said the proposed deal should not have come as a surprise to any health board, as it had been reached in a collaborative approach over several months.
"It is a bit frustrating at this stage for people to say they can't afford it since they have been kept well abreast of the situation the whole way along. We've had an inordinate amount of discussion about affordability during negotiations."
Nurses had used an "issues-based" approach to negotiations, putting forward issues it wanted resolved, including maintaining pay parity with police and teachers, better work/life balance and ensuring nurses had appropriate input in high-level decision-making, Ms Alexander said.
However, health boards have been concerned about flow-on demands from any substantial pay rises agreed.
The 2004 pay jolt has previously been blamed for sparking increased pay demands from other health workers.
- NZPA
