infonews.co.nz
INDEX
DISABILITY

Worrying times ahead for disability sector and NZ business following Court of Appeal decision

Thursday 17 February 2011, 1:34PM

By IDEA Services NZ Limited

924 views

IDEA Services NZ Limited
IDEA Services NZ Limited Credit: IDEA Services NZ Limited

All New Zealand workers and businesses should be disappointed and nervous at the Court of Appeal decision that IDEA Services staff who sleep over at homes at night are entitled to be paid the minimum wage for each and every hour worked.

IDEA Services chief executive Ralph Jones says that the decision will prove devastating for families and for people with intellectual disabilities.

“This decision costs IDEA Services around $176 million in back-payment, and the New Zealand disability sector around $500 million. Government has already indicated to us that it isn’t in a position to fund this. The future of our services and many other businesses is looking bleak unless Government intervenes.

“I know our 6000 employees will have mixed feelings about the decision. It will impact on everyone’s jobs. We simply cannot afford to continue to operate without the assistance of Government. Most providers of residential services will need to change the way they work,’ says Ralph Jones.

“I’m not sure that the union understood what a victory for its case would mean for its members, but there is nothing good in this for people with intellectual disability, the support staff who look after them, and their employers.”

Ralph Jones says that work has been underway regarding how the needs of intellectually disabled people can be met at night, keeping in mind their safety and ability.