Unions Back Election Pledges for $4 Hourly Care Worker Boost and Pay Equity Reform

Tōpūtanga Tapuhi Kaitiaki o Aotearoa New Zealand Nurses Organisation (NZNO), E tū, and the PSA are calling on all political parties to clarify their stances on pay equity following significant new commitments ahead of the November election. As reported by Waatea News, the unions have welcomed a pledge to restore the previous equal pay framework and provide an immediate $4 per hour wage increase for the country's 65,000 care and support workers. The proposed wage boost, described by E tū National Secretary Rachel Mackintosh as a downpayment, would take effect from 1 January 2027 and is estimated to be worth approximately $160 a week before tax for average full-time employees, or roughly $8,320 annually. The policy announcement, made in Tāmaki Makaurau, aims to reverse legislative changes made to the Equal Pay Act in May 2025. Those shifts led to the discontinuation of several claims, leaving many essential staff among the lowest-paid in the health sector. NZNO delegate and aged-care worker Sabina Lama noted that while these workers provide the vital support that allows older New Zealanders to live with independence, they currently earn between $23.95 and $31 per hour. Restoring the full pay equity system is estimated to require an investment of at least $12.8 billion over a four-year period. Political support for the sector has grown, with the Green Party pledging to restore the pay equity framework and Labour finance spokesperson Barbara Edmonds committing to settling the care and support workers’ claim by the first Budget of a new term. The proposal includes restoring legislation within the first 100 days of government to ensure that work already completed on existing claims is recognised, preventing unions from having to restart the lengthy process. Mackintosh emphasized that while the immediate hourly increase is a positive step toward financial relief for whānau and disabled people, the ultimate objective remains a comprehensive settlement that reflects the intrinsic value of care work. The unions argue that addressing this historic undervaluation is critical for workforce stability and supporting kaumātua across Aotearoa as they navigate cost-of-living challenges.