The Government is being called on to increase funding for the disability care sector after two IHC companies were put into statutory management because they can't afford to pay workers for sleepover shifts in their houses.Commerce Minister Simon Power ann
The Government is being called on to increase funding for the disability care sector after two IHC companies were put into statutory management because they can't afford to pay workers for sleepover shifts in their houses.
Commerce Minister Simon Power announced yesterday Idea Services and Timata Hou, subsidiaries of IHC and registered charities funded by the health and social development ministries, were being put into statutory management at their request.
They say they can't afford a $176 million liability for paying overnight staff as a result of an Employment Court ruling that those working sleep over shifts should be paid a minimum hourly rate rather than an allowance.
The Ministry of Health has estimated total back pay could be as much as $500 million.
The Public Service Association (PSA) said last night the only reason companies now faced huge liabilities was because the Government had been underfunding the sector for decades.
"Residential and home support workers are lowly paid and lack recognition for their skills and experience," said PSA national secretary Richard Wagstaff.
"It's time for the Government to front up and take responsibility by providing the sector with the funds it sorely needs."
Mr Wagstaff said workers in disability and aged care provided a valuable public service caring for society's most vulnerable members, and deserved a decent wage.
The IHC says other services are going to struggle to survive, and the Service and Food Workers Union has also called for more government support.
The court ruling is being appealed and Health Minister Tony Ryall said the Government did want to maintain quality services for residential care clients and their families.
"The Employment Court decision on the 'sleepover' case has very significant implications for the rest of the economy," he said.
Mr Ryall said the previous government was fully briefed on the problem in 2008 and did nothing about it.
