Govt gives with one hand, takes with the other

Media release from IHC New Zealand Inc

6 April 2010

Government gives with one hand, and takes with the other

IHC continues to look to government for a solution to the wage demand by the Service and Food Workers Union.

“The government has given with one hand but taken it away with the other,” says IHC chief executive Ralph Jones. “They have given IHC an increase of only 1.2% this year, yet they are imposing cost increases in excess of this for Kiwisaver and ACC payments.”

Mr Jones says that the additional funding IHC has received from the Ministry of Health is insufficient to cover these additional costs let alone other expense increases in providing services such as food, petrol and electricity.

Each year at the commencement of collective negotiations the Service and Food Workers Union has tabled wage claims that would cost IHC in excess of $20 million. This round has been no different with the union demanding a 12.5% wage increase. The union revised this to 2% but only after announcing industrial action.

The union has imposed industrial action that escalates over six weeks. This week is week four.

“The union is out of step with most New Zealand workers who are feeling the effects of the tough economic climate” says Mr Jones. “Their industrial action is failing to reach an accord with many union members who understand the situation and simply want to hold on to their jobs. We are very grateful for their support and cooperation.

IHC’s priorities are to keep people in work, maintain services and to ride out the economic difficulties. The union has lost sight of the reality of the situation, which appears politically motivated.

With just over 50% of the workforce unionised, IHC has been able to continue with business as usual in its community services during the industrial action.

IHC understand some union members are solicity funds from the public apparently for IHC. IHC employees who are members of the Service and Food Workers Union are paid from government funding, not fundraising income.

ENDS

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