Either side can apply to the ERA to fix the terms and conditions of a collective agreement if it can prove there has been a “serious and sustained” breach of good faith and all reasonable alternatives have been used up.
It means the ERA has the final say on what is included in the collective agreement, which becomes a binding and enforceable agreement just as if it had been agreed, ratified and signed by the parties.
Sullivan said officials were “frustrated and disappointed” by the union’s response to the new package put forward this week, which totalled $160 million over a 16-month term.
“The package put forward this week would have cost taxpayers an additional $31m over four years when compared to the offer made to senior doctors at the end of July.
“These increases are in addition to the $5900 annual step increase senior doctors receive until they reach the top of the 15-step pay scale.
“We are disappointed ASMS has chosen not to progress bargaining on the basis of this improved package, which we consider to be a fair and reasonable way forward.”
Based on the impacts of the 24-hour strike in May, it was estimated the longer action on September 23 and 24 would disrupt care for more than 13,000 patients, Sullivan said.
Contingency plans were in place to ensure care for those who needed it urgently, but disruptions to hospital services would continue for a week.
Health minister accuses union of walking away from patients
Health Minister Simeon Brown blamed the union for the stalemate, after it refused his recent request for it to enter binding arbitration.
“The ASMS union is putting politics ahead of patients, while Health New Zealand continues to engage in good faith.”
Senior doctors were “among the most well-remunerated public servants, with many also working in private practice”, Brown said, with an average pay of $343,500, including overtime and allowances and “generous conditions”.
“Let’s be clear: this strike is a choice. It is a decision by some of the most well-paid public servants in New Zealand to walk away from patients and cancel care.”
ASMS executive director Sarah Dalton.
ASMS executive director Sarah Dalton said Health NZ’s offer represented a “real pay cut” for senior doctors and dentists at a time when staff shortages were critical.
“ASMS made it clear that the strike notice would not be lifted unless there was a sufficient movement on the initial pay offer. This did not occur.”
Health NZ had been unable to give accurate financial costings about its offer and there were errors in the position it tabled, which it was meant to update before bargaining resumed today, she said.
“It did not do so.”
The union had offered to meet again before strike day to make more progress, but Health NZ had not taken up this offer.
“ASMS members are not walking away from patients – they simply know it is critical to have a pay offer that is competitive and continues to attract the medical workforce to New Zealand.”