YOUR PROPOSED NEW MECA

NZNO/DHB MECA 2017 Ehara taku toa i te toa takitahi, ēngari he toa taki mano 14 November 2017 YOUR PROPOSED NEW MECA Introduction from your negotiation team Kia ora koutou from your negotiation team. We are pleased to bring you a proposed MECA for your consideration. A summary is in this update and you can get more information and vote at member meetings. Your negotiating team are recommending the proposed MECA to members. Negotiations took longer than we hoped because of the number and complexity of the issues. During this time however, you kept DHBs aware of your solidarity and support with highly visible campaign actions. We want to thank you all so much for your hard work. We were heartened by your support and effort to keep our issues front and center of the employers and governments minds. In the last update in October we let you know we had an employers offer to bring back to you. We were not going to be able to recommend this offer because it included a 43 month term and a delay of six months for the first pay increase. But on November 8 NZNO was informed that the DHB CEOs were meeting with the Minister for approval to go beyond the financial parameter so that they could increase the offer and that the CEOs would manage/ address the additional costs within their budgets. Your negotiation team feels that what is being presented is a fair settlement that delivers on most key issues and provides processes with set timeframes to address others. The over-all cost of the offer is greater than other recent MECA settlements in the DHB sector. As well as the proposed wage increases, there is agreement for negotiations on pay equity which will begin in the new year. This is a big first step in the process. It means that the DHBs have agreed in principle that the work of nurses, HCA and midwives is predominantly performed by women, has been historically undervalued and subject to systemic undervaluation. We now have a new Government fully committed to pay equity and our aim is to have resolution which will include further remuneration increases as soon as possible. We have also reached agreement on the implementation of CCDM in all DHBs by 2021, with improved reporting requirements which are enforceable. Implementation plans now need to be agreed in all DHBs within 6 months of ratification of the MECA. Further, DHBs will be required to include CCDM in annual plans and report to the Ministry of Health on progress. The amended escalation pathway wording for unsafe staffing in the MECA is significantly stronger and clearer. Compliance with the escalation pathway will be a priority for NZNO in 2018 and NZNO/ DHB staff and delegates will be trained on the process. Ratification Meetings It is vital that all NZNO members attend a meeting, hear the full detail of the proposed MECA and cast your vote. This is your MECA so your vote really does count! Meeting details are at www.nzno.org.nz/dhb You must attend a meeting to vote. The outcome of the voting will be based on a simple majority nationally of members who attend the meetings. 1

Summary of the Proposed MECA Term A 33 month term from 1 November 2017-31 July 2020. Wage and salary increases RNs, RMs, ENs, HCAs and Community RNs and MWs 2% effective from 6 November 2017 2% effective from 6 August 2018 2% effective from 5 August 2019 See salary scales on page 5 Designated Senior Nurses & Midwives Additional percentage increases have been agreed to these scales as part of our claim to address relativity issues with the RN and RM scales caused by the increased RN and RM PDRP allowances achieved in the previous MECA. 4% effective from 6 November 2017 2% effective from 6 August 2018 2% effective from 5 August 2019 Grade 1 of the designated senior nurse and midwifery scale shall be deleted. The current grade 2 of the designated senior nurse & midwifery scale will become grade 1 and each grade above will be adjusted accordingly. See salary scale on page 6 Lump Sum A one-off lump sum payment of $350 (pro rata for part timers) paid to permanently employed NZNO members on ratification of the proposed MECA. The lump sum is not payable to casual employees or people who join NZNO after we notify the DHB representatives of the outcome of the ratification meetings. This is likely to happen on Tuesday the 12 December to allow time for the scrutineers to collate the final voting count. The lump sum will be paid no later than 28 February 2018. Nurse Practitioners The following is agreed: 1. Nurse Practitioners are included in Coverage 2.1 of the MECA 2. Nurse Practitioners are currently scoped at Grade 8 of the Senior Nurses Scale 3. A re-evaluation process will be undertaken by the Job Evaluation Review Committee of an agreed number of Nurse Practitioners roles. This process will be completed by 15 December and the results of the re-evaluation will inform the DHBs/NZNO Pay Equity Working Group process. Leadership programme and salary recognition A new Leadership Progression Pathway salary scale is available for RNs and RMs who have been approved to participate in the DHBs leadership programme. The programme outline can be viewed on our website. Current clinical leadership pathways include employer support for education, training and the individual s preparation for an advance or expanded practice roles including future advancement to a designated senior nurse role. Advance and expanded practice roles may be in response to organisational development of alternative models of care or service delivery model. We do have some reservations about whether this scale will be used fairly and equitably so we will monitor this during the term of the MECA and if required will raise any issues at the next negotiations. Nurses & midwives on the leadership programme will not be required to work in Senior Nurse & Senior Midwife positions or cover for vacancies unfilled. See salary scale on page 6 Designated RN Prescribers Where a RN is supported by the DHB to achieve designation as a nurse prescriber as part of these developments they will be placed on the Leadership Progression Pathway salary scale. When a RN is appointed to a position that requires them, as an essential requirement of the job description, to be a designated nurse prescriber they will be appointed onto that salary scale. Allowances PDRP (effective from 6 November 2017) EN Accomplished increased from $4000 to $4500 p.a. EN Proficient increased from $2500 to $3000 p.a. On call (effective from 6 November 2017) $4.06 increased to $8.00 an hour 2

$6.06 increased to $10.00 an hour on a public holiday Telephone on-call allowance of $10.00 will be included in the MECA and preservation of higher allowances where they apply Higher duties allowance Access now to the allowance for staff who work 12 hour shifts applies after three consecutive days work and staff who work 10 hour shifts after four consecutive days worked. Pay Equity DHBs have agreed in principle with the merit of our claim. This is a big first step in the process, it means that the DHBs have agreed in principle that the work of nurses, HCA and midwives is predominantly performed by women, has been historically undervalued and subject to systemic undervaluation. We have reached agreement on the process by which we will seek resolution of the pay equity issues and this includes agreed timeframes. The process shall begin in February 2018 with the goal of achieving an outcome later in 2018. We will report back to members on progress as we go. This is a real opportunity to deal with gender equity with a broader brush across a longer term rather than for example pursuing pay parity which would not necessarily deliver equity across all groups in a set of MECA negotiations. Safe Staffing A package of changes has been agreed. Overall the team believes that these changes will strengthen DHBs obligations to deliver CCDM and provide NZNO with greater ability to enforce the MECA if there are disputes. There is commitment to the following: Full implementation of CCDM in all DHBs by 30 June 2021 DHB Implementation plans shall be agreed between the CCDM councils in each DHB and the Safe Staffing Healthy Workplaces Governance Group within 6 months of ratification of the MECA (this includes DHBs who are yet to purchase an acuity tool) Implementation plans to be published by each DHB and the Safe Staffing Healthy Work Places Unit. These plans shall comply with the CCDM standards and among other things include; timeframes for each stage/milestone of CCDM paid release of staff for education and all other components of CCDM eg steering group meetings, CCDM council meetings education on a validated acuity tool and the CCDM programme for all staff agreed resourcing to ensure implementation of plans and consequent/ subsequent activities. Very significantly implementation plans are to be outlined in each DHBs accountability document and annual plan and included in the Ministry of Health operational policy framework. Escalation process for unsafe staffing The current MECA escalation provisions (clause 6) is unclear and not user friendly. DHB structures and processes do not assist in the operation of the escalation pathway. The following wording will be now added and the provisions will moved to the safe staffing healthy workplaces appendix 1(b) rather than in the hours of work provisions. Notification of unsafe staffing can be made by the nursing or midwifery team and not individuals Strengthened role of Health and Safety legislation. Patients and staff safety and wellbeing being paramount objectives Clear response times for each part of the process Timely recruitment processes to avoid unwarranted delays DHB commitment to train managers on process NZNO commitment to training own staff on process Clarified role of incident reporting Clarified who has authority to address each stage of the process Ensured consideration is given to appropriate skill mix A requirement for the DHBs to ensure consideration of appropriate skill mix and availability of casuals/ new grads/ resource nurses 3

Discretionary sick leave Included in the Terms of Settlement is A reminder to DHBs of their obligations, as well as a statement that DHBs financial positions, or within reason, statutory leave balances should not be used as a deterrent to apply for discretionary leave or as a reason not to grant discretionary leave To progress through the term of the agreement Support for victims of domestic violence and an alternative dispute resolution process consistent with NZNO s commitment to Te Tiriti o Waitangi will be explored jointly with other unions and DHBs during the term of the MECA. Technical changes and bargaining fee clause There were a number of amendments to address legislation changes or to improve clarity and reading of the MECA. These will be on the NZNO website www. nzno.org.nz/dhb and available in handouts at the meetings, as will be the bargaining fee clause. Variations currently in operation shall be reviewed and confirmed by letter. Claims that were not able to be progressed DHBs did not agree to the following member claims and the team were not able to progress them this time: Inclusion of Needs Assessor Co-ordinators who are nurses in the MECA. This issue will soon be tested by NZNO in the Employment Relations Authority. Improvements to Professional Development provisions Reductions to the number of hours staff can be required to work on-call Two full consecutive days off work each week. The DHBs interpretation of this clause is impacting on member s ability to have adequate rest after a period of work. This is a health and safety issue. We are considering whether the DHBs interpretation complies with the MECA and whether there are potential legal options to resolve this outstanding and important issue. 4

Salary Scales Registered Nurse and Registered Midwife scale 4/07/16 Step 5 66,755 68,090 69,452 70,841 Step 4 60,081 61,283 62,508 63,758 Step 3 56,865 58,002 59,162 60,346 Step 2 53,528 54,599 55,691 56,804 Step 1 (New Grad) 49,449 50,438 51,447 52,476 Enrolled, Obstetric, Karitane Nurses 4/07/16 Step 3 50,685 51,699 52,733 53,787 Step 2 46,977 47,917 48,875 49,852 Step 1 44,505 45,395 46,303 47,229 Health Care Assistants and Hospital Aides 4/07/16 Step 4 42,650 43,503 44,373 45,261 Step 3 41,894 42,732 43,587 44,458 Step 2 39,269 40,054 40,855 41,673 Step 1 36,955 37,694 38,448 39,217 Caseload Midwives (penals and overtime do not apply with the exception of penals on public holidays) 4/07/2016 89,299 91,085 92,907 94,765 Progression: By annual increment through all steps in each scale at anniversary date. Community Mental Health Nurses, District Nurses and Public Health Nurses and Community Midwives 4/07/2016 Step 8* 73,706 75,180 76,684 78,217 7* 72,290 73,736 75,211 76,715 6* 70,871 72,288 73,734 75,209 5 66,755 68,090 69,452 70,841 4 60,081 61,283 62,508 63,758 3 56,865 58,002 59,162 60,346 2 53,528 54,599 55,691 56,804 1 49,449 50,438 51,447 52,476 Progression: By annual increment at anniversary date steps 1 to 5 inclusive. Thereafter progression is annual at anniversary date, subject to satisfactory performance which will be assumed to be the case unless the employee is otherwise advised (*). 5

Salary Scales continued 8.0.4 Designated Senior Nurse and Midwifery Salary Scale Grade Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 4/07/2016 72,290 75,182 76,685 78,219 73,706 76,654 78,187 79,751 75,125 78,130 79,693 81,286 78,749 81,899 83,537 85,208 81,779 85,050 86,751 88,486 84,807 88,199 89,963 91,763 83,292 86,624 88,356 90,123 86,321 89,774 91,569 93,401 89,350 92,924 94,782 96,678 87,834 91,347 93,174 95,038 90,866 94,501 96,391 98,318 93,893 97,649 99,602 101,594 90,866 94,501 96,391 98,318 93,893 97,649 99,602 101,594 96,922 100,799 102,815 104,871 93,893 97,649 99,602 101,594 96,922 100,799 102,815 104,871 98,896 102,852 104,909 107,007 98,896 102,852 104,909 107,007 104,253 108,423 110,592 112,803 109,611 113,995 116,275 118,601 114,967 119,566 121,957 124,396 Progression: Movement through steps in each grade shall, subject to satisfactory performance (see 8.1(f) below), be annual on the anniversary date of appointment to the designated senior position. Movement between Grades shall be on the basis of appointment to a higher graded position. Leadership Progression pathway 6/11/2017 6/08/2018 5/08/2019 scale Step 1 69,100 70,482 71,892 Step 2 70,500 71,910 73,348 Step 3 72,000 73,440 74,909 6