Aged Residential Care Provider Newsletter

2 June 2017

This newsletter is designed to assist Aged Residential Care (ARC) providers in implementing the Care and Support Workers (Pay Equity) Settlement. We are sending these newsletters out every week to reiterate key messages; provide updates on ongoing processes; and provide information on upcoming events.

This edition outlines recent implementation activities and developments including:

· Data collection due today

· Definition and calculation of continuous employment

· What’s happening this coming week

· Legislation: summary of Select Committee hearing

· Residents’ increase

· Change readiness assessment

· Qualifications update

· Key messages

· Key dates

· Frequently asked questions

· Contact the pay equity implementation team

Data collection due today

The Workforce Translation Tool should be completed by all ARC providers today. It can be downloaded from: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers/pay-equity-settlement-aged-residential-care

The Workforce Translation Tool is being used because:

· The tool helps providers to work through eligibility and translation in order to make changes in their payroll systems

· The Ministry needs to provide assurance to Ministers that providers will be in a position to accurately pay eligible employers the correct rates from 1 July.

· The Ministry needs to provide government with information about the outcomes and benefits of its investment to settle historic pay equity claims for care and support workers: this means the Ministry must be able to conduct workforce analysis to provide an accurate picture of the care and support workforce, and monitor changes over the course of the settlement period. This includes changes to the workforce’s size, makeup, stability and qualifications.

The data collection and submission process

The data collection and submission process for providers consists of the following steps:

Download the Workforce Translation Tool from the following Ministry of Health webpage: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers/pay-equity-settlement-aged-residential-care
Review the Workforce Translation Tool in correspondence with the guidance document in Section 7. Please contact the Ministry on as soon as possible regarding any questions or clarifications.
Complete the tool using payroll reports for the eligible workforce as at 1 May 2017.
Upload the tool to this website: http://tinyurl.com/MoH-NZ-PE1. Please do not email the tool, for your security it must be submitted via the website.

The Workforce Translation Tool must be uploaded by Friday 2nd June. Providers will need to enter their contact information when they upload their completed submission.

The central implementation team may contact you should there be any need to clarify your data submission.

Support is available

A central Ministry team will be actively working with providers to help them with completing the Workforce Translation Tool. Where providers are unsure they will meet the 2 June deadline they need to flag this as soon as possible with the team at or on 0800 855 066 so they can proactively work with providers.

As questions are answered these will be updated in the Q&A section of this document and/or via the Ministry website http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement

Some ARC providers need to complete two data collection tools

Some ARC providers need to complete two data collection tools. This is for providers that may also provide services eligible for funding related to the Care and Support Workers (Pay Equity) Settlement that are not part of the ARC national contract, or another service paid at a bed day rate, such as facility-based respite. These additional services may be Home and Community Support Services, or Community and Residential Living (Day Programmes). We have contacted these providers directly.

Data collection privacy principles

Before requesting any information, the Ministry assessed the proposed data collection information fields against all twelve information privacy principles in the Privacy Act. In doing so, the Ministry identified key risks and developed appropriate risk responses. This information is included in the short-form Privacy Impact Assessment (PIA), which is published on the Ministry website: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers

Definition and calculation of continuous employment

Some providers have raised questions about the definition of continuous employment, for translating workers to the correct pay rate.

Please review the information below. Providers need to ensure that they have correctly calculated “length of service”. You may need to manually deduct periods of leave without pay. The impact of not doing this accurately is that you might inadvertently translate someone on to a higher pay band than what they are eligible for.

If you think that you translated workers to a higher pay band than they are eligible for, please contact us next week to discuss.

The Care and Support Worker (Pay Equity) Settlement Bill provides the following information.

Continuous employment, in relation to a care and support worker,—

(a) includes any period during which the worker is—

(i) on paid holidays or leave under the Holidays Act 2003; or

(ii) on parental leave under the Parental Leave and Employment Protection Act 1987; or

(iii) on volunteers leave (within the meaning of that term in section 2(1) of the Volunteers Employment Protection Act 1973); or

(iv) receiving weekly compensation under the Accident Compensation Act 2001 as well as, or instead of, payment from the employer; or

(v) on unpaid sick leave or unpaid bereavement leave; or

(vi) on unpaid leave for any other reason for a period of no more than 1 week; or

(vii) continuously employed by a previous employer if—

(A) the worker transferred from the previous employer to the current employer; and

(B) the transfer was a result of restructuring (within the meaning of that term in section 69B of the Employment Relations Act 2000); but

(b) unless otherwise agreed between the worker and the worker’s employer, does not include unpaid leave that is not referred to in paragraph (a)(v) or (vi)

Key dates

· By 31 May: Claim forms for employee attendance at union ratification meetings are to be submitted to the Ministry, please download the form here: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers. Ratification claims received by 31 May will be paid on 20 June 2017. For ratification claims received after 31 May the Ministry will aim to process them within 10 business days but no earlier than 23 June 2017.

· By 2 June 2017: ARC providers must submit completed Workforce Translation Tools.

· By 1 July 2017: Legislation will be progressed through Parliament to give effect to the Settlement Agreement and ensure the new wage rates are passed onto workers from 1 July.

· From 1 July 2017: Providers have a legal obligation to ensure employees receive their increased wages in the first pay day from their employer (i.e. weekly or fortnightly, depending on their normal pay run).

· From 1 July 2017: Providers will advise funders that they have commenced making payments to employees. Unions will also play a role in ensuring that employees have received the new wages.

What’s happening this coming week

The focus for ARC providers over the coming week should be on contacting pay roll providers, gathering staff qualification information, preparing claim forms for employee attendance at union ratification meetings providers and reviewing the Ministry’s frequently asked questions on the Settlement.

Legislation

The bill to give effect to the Care and Support Worker (Pay Equity) Settlement Agreement went to the Health Select Committee this week.

There were 21 submissions received. They focused on a range of topics including funding, relativity and training.

The bill is due to be reported back to Parliament by 6 June 2017.

The bill enshrines the new pay rates in law and ensures providers pass on the $2 billion of wage increases over five years to the 55,000 workers in aged and disability residential care, and home and community support services around the country.

The bill must be fast-tracked through Parliament to ensure it is passed by 1 July.

More information on the settlement is available at on the Ministry of Health website at: www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement

Residents’ with assets above the threshold price increase

DHBs and ARC providers were advised this week of the changes to the asset threshold and maximum contribution rates for aged residential care from 1 July. Providers are responsible for communication this decisions to their residents where required.

The price residents in aged care facilities with assets above the threshold pay will increase by an average of 9.9 per cent on 1 July 2017. The majority of the increase is a result of Care and Support Worker (Pay Equity) Settlement.

The price increase was signalled when the pay equity settlement was announced in April and confirmed at annual contract negotiations between DHBs and providers in May.

The increase arising from the impact of the pay equity settlement is $74 a week (including GST). Including the annual price increase of 1.8 per cent for general cost pressures, the total increase will be between $89.88 and $91.42 a week depending on a resident’s location (including GST).

The Ministry of Health recognises this is a significant increase, however it addresses a historic undervaluation of care and support workforce.

The pay equity settlement is also expected to have additional benefits for the quality of care for older residents, including reduced staff turnover and caregivers with more skills and qualifications.

More information is available on our website here: http://www.health.govt.nz/our-work/life-stages/health-older-people/long-term-residential-care/july-1-2017-changes-asset-threshold-and-maximum-contribution-rates-aged-residential-care

Change readiness assessment

Shortly, providers will receive a link to a change readiness assessment survey from the Ministry of Health. This survey will contain questions that will assist the Ministry in gaining an understanding of what further guidance providers need from us, in order for providers to implement the new pay rates from 1 July.

Qualifications update

Information on relevant National Qualifications equivalent to the New Zealand Certificate in Health and Wellbeing is being updated regularly. The latest is available on the Careerforce website here: www.careerforce.org.nz/pay-equity/equivalencies.

Overseas qualifications

Care and support workers with Nursing degree qualifications from the Philippines, India, South Africa, Australia and United Kingdom translate on the basis of service. Care and Support workers with these qualifications need to complete two culturally focussed unit standards (28989 Cultural diversity and 28543 Describe culturally safe Māori operating principles and values) to have equivalency to the level 4 New Zealand Certificate in Health and Wellbeing.

Older qualifications

A number of private training enterprises and other organisations that awarded qualifications in the 1990s are no longer in existence. Care and support workers with qualifications issued from organisations that no longer exist translate on the basis of service.

Qualifications from organisations not approved by NZQA

Care and Support workers with certificates or qualifications that have not been issued by a NZQA approved Tertiary Education Organisation translate on the basis of service.

Other qualifications

Qualifications not directed at care and support work (such as Health Management, Counselling) are not considered equivalent to the New Zealand Certificate in Health and Wellbeing qualifications.

Key messages

On 18 April 2017, the Government announced a $2 billion pay equity settlement for 55,000 care and support workers in New Zealand’s aged and disability residential care and home and community support services.

From July 1, workers will receive a pay rise between 15 and 50 per cent depending on their qualifications and or experience. The settlement means over the next five years, the workforce will see their wages increase on a range between $19 and $27 per hour.

The Care and Support Workers (Pay Equity) Settlement Bill was introduced to Parliament on 25 May.

This means providers have a legal obligation from 1 July to ensure employees receive their increased wages in the first pay day from their employer (i.e. weekly or fortnightly, depending on their normal pay run).

A copy of the Settlement Agreement can be found on the Ministry’s website: http://www.health.govt.nz/system/files/documents/pages/care-support-workers-pay-equity-settlement-agreement-signed-8may17.pdf.

Implementation approach

The Operational Policy Document, which provides detailed guidance on the implementation of the Settlement Agreement, is available on the Ministry’s website.

In order for providers to commence payment to qualifying employees from 1 July 2017, a process to pass additional funding to providers is required. In the Aged Residential Care sector, for most services this will be done by an increase to the prices paid for those services.

For the national ARC contract, there will be an increase to the price paid for the ARC nationally contracted services (rest home, hospital, dementia and psycho geriatric). This will be delivered through the usual annual national ARC contract process and DHBs will communicate the process and timeframes for this through the usual communication channels. Providers should refer any questions on this process to their industry association body or DHB Central TAS.

For other services paid at a bed day rate (e.g. facility-based respite care), the pay equity settlement payment will also be made by increasing the prices paid for those services.

Frequently asked questions

1. What services is the Data Collection Tool required for?
Home and Community Support Services and/or Community and Residential Living Services.

2. What services is the Workforce Translation Tool required for?

Please include all employees working on a contract eligible under the Settlement - whether an ARC national contract service or a Home and Community Support Service.

3. What about an employee’s other conditions of employment?

Generally, all other conditions of employment remain the same. However, service and qualification allowances will be extinguished because they have been replaced by the new qualifications-based pay structure. Weekend and night penal rates in employment agreements will remain but those that are calculated as a percentage of base pay will be converted to allowances.

4. How do I know if certain workers and/or certain services are eligible?

A multi-step decision process needs to be used to assess eligibility of any particular worker:

· Determine whether the service is covered by the Settlement Agreement; and

· Test whether the worker is within scope of the Settlement Agreement.

· Establish whether the service is funded by public funding not private.

We recommend you look at the eligibility information in the Settlement Agreement that can be downloaded from this webpage http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement and section 3 of the Care and Support Workers (Pay Equity) Settlement operational policy document that can be downloaded from this webpage http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers.