Senior doctors shrug off Health NZ's bid to force settlement

• Senior doctors say no need for forced settlement
• Health NZ argues it's out of options to break impasse
• Health Minister denies intervening - but admits he wants "an end" to the stoush

The senior doctors' union has slammed Health NZ's attempt to force it into a settlement as "needless" - and likely to make its members more angry - as they prepare to walk off the job again next week.

Health NZ said on Thursday, after more than a year of failed negotiations with the Association of Salaried Medical Specialists (ASMS), it would now apply to the Employment Relations Authority to fix the terms of the collective contract.

If the authority was satisfied there had been a "serious and sustained" breach of good faith, and all reasonable alternatives had been used up, it could enforce a binding contract on the parties.

ASMS executive director Sarah Dalton said Health NZ's move - which came ahead of the looming 48-hour strike - was unprecedented "and unwarranted".

The case would not meet the threshold for intervention by the authority, in her view.

"We don't think this is a situation that requires pay fixing.

"What it requires is for Health NZ - and for the government that funds them - to recognise that senior doctors have been taking real pay cuts for several years now.

"We haven't had any meaningful response from the employer about workforce planning, about investment in salaried staff, about how they plan to address widespread shortages.

"We just need an end to the chaos and a commitment of real funds and time to invest in doctors and dentists, and get this sorted."

Health NZ's acting chief executive Richard Sullivan, who spent three days at the bargaining table this week, said the agency had "listened carefully" to what the union was seeking.

Its improved offer in response amounted to an investment of $160m over a 16-month term, he said.

"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."

Sullivan said he was disappointed the Employment Relations Authority had been approached after terms over the pay settlement couldn't be reached.

He told Morning Report on Friday Health NZ's focus over the last week had been to try and remove the strike and reach an agreement.

"We've had, I guess, a prolonged period of almost a year now, many days of formal bargaining, I think 11 or 12 mediation, facilitated bargaining.

"I'd like to say that we have listened, certainly over the last week we've come forward with significant change to our offer. We've put forward over $160 million for the 5500 doctors over the collective agreement.

"We've tried to shorten the term, we've offered up a $40 million extra fund that they could use to work out how to support the senior doctors. But it has been frustrating that that hasn't led to the ASMS team being able to come back with a counteroffer that we could work with, and so we feel that we've done everything we can, which has taken us down this pathway."

Sullivan said there had been a sustained breach of good faith from the ASMS

"I think the challenge is when you increase your offer by, you know, $30 million materially over a period between July, we've reduced the length of our settlement by a third, which means that there's obviously opportunity for future pay increases, and we've worked really hard to try to meet the cost of the conversation. But as I say, unfortunately, we've had no counteroffer to work with."

He said while he accepted negotiations were slow off the mark, he believed that responsibility was on both the union and Health NZ.

"I don't accept the costings issue. We've been very clear about the total dollars on the table, and we've been very clear about the length of terms, which I say we've reduced, but it's been very hard to move that forward when you don't have something to work with."

However, Dalton maintained the offer still amounted to a pay cut in real terms for most senior doctors and dentists "at a time when recruitment and retention is critical".

"Health NZ refuses to recognise a full year of delay to the bargaining process due to its inability to come to the table with a pay offer. Its bargaining team was not assembled until after the collective agreement expired and the first offer was not made until April 2025."

The union negotiaters were not willing to accept the "sugar hit" of lump sum payments, she said.

"We want meaningful investment. We suggested they take that money and use it to lift Continuing Medical Education, which hasn't increased since 2009."

Health NZ's negotiating team did not appear to understand what they were even putting on the table, she said.

Requests for Health NZ's own finance people to test the implications of their offers resulted in "contradictory information".

"They're in hurry to settle now, which is fine - but why weren't they in a hurry two weeks ago? A month ago? Three months ago?"

Doctors were extremely reluctant to strike, but unfortunately the only time there was any attempt by Health NZ to lift the offer on the table was when strike action was called, she continued.

"I know leadership at Health NZ were hoping the strikes would be lifted, but there's not been enough progress. We remain open to discussions."

Health Minister Simeon Brown's comments characterising the strike as "a decision by some of the most well-paid public servants in New Zealand to walk away from patients and cancel care" was likely to anger doctors, she said.

"They are upset that patients are missing out on care every single day because of this Government's approach to health, which is a disinvestment approach, as our paper on health funding has shown."

The union also disputed the Health Minister's repeated claim the average remuneration for a senior doctor (including overtime and allowances) was $343,500.

"The last time he said that we got storm of correspondence from frustrated members saying 'If I earned that much, I would have no complaints'.

"It's all very well to say doctors are well paid, but we can't do without them. It is a massive commitment of time and resources to train as specialist.

"New Zealanders want to know Health NZ is properly staffing our hospitals, and that is not the case."

Union 'playing with patients' lives' - Minister

Health Minister Simeon Brown said he had not directed Health NZ to engage the Employment Relations Authority, but acknowledged he wanted to "see this brought to an end."

He was scathing of the ASMS decision to proceed with next week's strike, which followed a 24-hour strike in May.

"That is putting patients at risk. Patients' care is being delayed.

"Many of these people who've already been waiting too long on waiting lists, are having their care delayed even further, and ultimately this needs to be brought to a head, and that's why Health New Zealand is taking that action."

Health NZ had continued to come to the bargaining table, putting offers on the table, and trying to resolve issues, he said.

"What's happening is the union is playing politics with patients' lives - that is frankly unacceptable.

"These are some of our most highly paid and most critical public servants.

"They play a critical leadership role in our health system, they should be putting patients first, resolving these issues around the bargaining table, rather than delaying the care of thousands of patients who have already been waiting too long."

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