16 August 2018
We noted the announcement reported on the Stuff news site (Jessica Long (14 August 2018) Pay equity deal will see women in education support roles receive 30 per cent pay rise Stuff) that 329 Education Support Workers (ESWs) are to receive a 30% pay increase and that it is aimed at those ESWs retained directly by the Ministry of Education. The Early Childhood Council's (ECC) enquiries of the Ministry highlight that they have again not yet thought about the impact on any ESWs employed by childcare centres.
The move by union NZEI to seek such a massive increase in ESW pay rates will, for some, be well-overdue. For others, this may well impact negatively on the most vulnerable of families and children in our care. Emerging from the debate that led to this negotiated settlement is a call for all ESWs to be qualified, essentially turning the ESW role (over time) into a specialist role equivalent to early childhood education (ECE) teachers. Whether this proposal gathers interest or not is likely to be an issue for the Education Workforce Strategy currently under development.
A series of more immediate impacts are likely to hit our sector:
There is little sympathy from government. The Prime Minister Jacinda Ardern was reported in media on Monday that she will be "...focussing on getting businesses on board" with the government's efforts to develop a modern economy. This modern economy currently just wants to pay people more without any consideration of performance, and in the ECE sector's case, without any corresponding increase in subsidy funding.
Budget 2018 delivered a 1.6% increase in the per child subsidy rate - or about $10,000 a year for the average childcare centre. We know that an average of 54% of all revenues in a childcare centre go toward salaries and wages. On that basis, why wouldn't the annual increase across all staff in an average centre be closer to $5,400 (or around $450 per person per annum)?
We are not saying that ESWs, or teachers for that matter, are not worth more. But in a sector so heavily regulated and subject to government subsidisation, an increase to the subsidy level must accompany any move in wage rates and must take account of the ripple effect such movements create.
Peter Reynolds
Early Childhood Council
Chief Executive Officer
To read the Stuff article mentioned above, please go here: