With Brent crude now trading close to US$100 a barrel,
the PSA is calling on the Government to make April’s
temporary 30 percent mileage rate increase for home and
community support workers permanent, and to go
further.
“When Health Minister Simeon Brown announced
this increase in April, he said it was targeted and
temporary, tied to a consistent fall in petrol prices that
hasn’t happened,” said Fleur Fitzsimons, PSA National
Secretary.
“Global oil prices are climbing again on
the back of the Iran war, and these workers will soon be
back where they started: paying to go to work
themselves.
“Home support workers cannot face a cut in
the small fuel subsidy given we are in a cost-of-living
crisis, and they have already had their pay equity claim
cancelled.”
With petrol prices are about to surge
again, Finance Minister Nicola Willis told The Post she is
now seeking advice on whether to extend temporary support
measures. The mileage rate for home support workers had been
frozen since March 2022 – the April decision was for an
increase in the allowance from 63.5 cents to 82.5 cents per
kilometre, to remain in place for up to 12 months, or until
the price of 91 octane petrol fell below $3 per litre for
four consecutive weeks.
“The mileage allowance must be
set at an adequate level that properly reflects costs and we
still need to see the annual statutory review of the
In-Between Travel allowance result in further increases.
Workers can’t afford to wait any longer especially with
the Government about to pass the Employment Leave Bill which
further erodes their holiday and sick leave entitlements,”
said Fitzsimons.
Advertisement – scroll to continue reading
“Home support workers are essential.
They care for our elderly and disabled New Zealanders,
driving between clients in their own cars, on one of the
lowest reimbursement rates of any publicly funded workforce.
The Government has the power to fix this permanently,
immediately, without waiting on Treasury or IRD. It just
needs the will to do it.
“In a cost-of-living crisis
this government promised to fix, it’s time to stop
treating essential workers’ pay and conditions as an
afterthought. We’re writing to the Finance and Health
Ministers today calling on them to make this increase
permanent and go further by properly reviewing a rate
that’s been inadequate for years.”
Background – pay
equity legal challenge
The joint union legal
challenge to the Government’s pay equity claim under the
Bill of Rights Act has its first full hearing at the High
Court in Wellington on Monday 3 August. The PSA has also
lodged a complaint with the Labour Inspectorate over this
issue.
