Health NZ Promises Bonuses Amid Union Claims of Pay Inconsistency

Health New Zealand Te Whatu Ora has announced plans to offer bonus payments to senior doctors willing to work in challenging locations. This initiative aims to address staffing shortages in particular areas and specialties. However, the Association of Salaried Medical Specialists, representing approximately 5,500 senior hospital doctors and dentists, has voiced concerns regarding inconsistencies in current pay practices.

The union’s head, Sarah Dalton, described the new bonus scheme as potentially translating to “an effective pay cut” for around 90% of its members. This skepticism arises from ongoing issues with how allowances are distributed to hospital staff. Dalton emphasised that the current system is disorganised, labelling it as “ad hoc and shambolic.”

In addition to the bonuses, Health NZ has earmarked $32 million over the next two years to incentivise doctors to accept positions in areas experiencing critical shortages. Despite this commitment, Dalton pointed out that the agency already spends approximately $384 million annually on contingency staffing. This expenditure, she argued, contributes to a growing trend where medical professionals are leaving salaried positions for locum work and temporary roles, which offer more flexibility and potentially higher compensation.

The union’s criticism highlights a broader issue of pay equity and the effectiveness of financial incentives in attracting and retaining skilled healthcare professionals. As the healthcare system continues to face significant pressures, it remains to be seen how Health NZ will address these concerns and ensure a stable workforce.

Dalton concluded by urging Health NZ to reform its payment structures to create a more sustainable and consistent approach to compensation, rather than relying solely on temporary incentives. The situation reflects ongoing challenges within the healthcare system, where staffing shortages and financial constraints are becoming increasingly pronounced.