3% Pay Increase
Members are reminded of the 3% increase on and from 1 July 2004, as delivered through the NZPFU Collective Agreement.
Holidays Act 2004
Details on the principles of the Union’s case regarding Days in Lieu are posted on the Website.
Along with the list of issues arising out of the Holidays Act 2003 as previously detailed, a further issue has arisen Holiday Pay Supplement.
The Holidays Act provides payment of holiday pay at a rate that is based on the greater of:
- The employee’s ordinary weekly rate as at the time of taking the holiday; or
- The employee’s average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday.
The Collective Agreement provides the same concept. However, average weekly earnings are calculated on a time frame back to when the last leave was taken i.e.160 days.
Generally a shorter period than the averaging calculation is made and is advantageous to the worker because of less possibility of - wage increase or promotion.
In checking the previous Holidays Act, the Union believes the provisions were very similar to the new Act.
The question is therefore, how was the Collective Agreement able to provide a favourable variation on the statutory provisions as in the previous Act, but this cannot happen now?
The Fire Service is simply applying a strict application of the new Holidays Act as regards calculation of Holiday Pay (Supplement).
The Union finds it interesting but not surprising that the Fire Service is taking this “pick and chose” approach and applying the Holidays Act 2003 strictly where it suits their purpose, but not when it does not – e.g. Days in Lieu.
The issue of the correct calculation of Holiday Pay is therefore added to the list of issues that it seems will require determination by the Courts.