STACY SQUIRES/STUFF

Health Minister David Clark has announced mental health and addiction workers would be brought under the pay equity settlement Act, in a $173m extension.

The Government has approved a $173 million funding package to give 5000 mental health and addiction workers pay equity. 

Health Minister David Clark said that sector's employees would soon receive the same pay rates as aged care and support workers. 

In an agreement with unions and employers, the Government will extend the Care and Support Workers (Pay Equity) Settlement Act to include mental health and addiction support workers. 

The Act was born out of a $500m settlement between aged care workers and the previous Government, brought about by a precedent-setting court case lead by aged care worker and Wellington woman Kristine Bartlett.

READ MORE:
* Government enters into pay equity talks for mental health workers
* Historic pay increase for workers in female dominated industry 

But a claim was later lodged with the Employment Relations Authority by the Public Service Association and E tū, seeking that mental health and addiction support workers be paid the same increased wage rates. 

Clark said nearly half of mental health and addiction workers would get an increase of more than $3 per hour, meaning full-time workers would be paid up to an extra $120 a week before tax.

A further 20 per cent of workers were expected get an increase of more than $5 per hour or an extra $200 for a 40-hour week. 

The new pay scale reflected workers' qualifications and experience and would be backdated to July 1. 

"This agreement puts right a problem created by the previous Government, which deliberately excluded mental health and addiction workers from the Care and Support Workers settlement.

"These workers often support New Zealanders when they are most vulnerable and they deserve a fair go. This Government has delivered that," said Clark.

It was hoped the pay boost would "deliver a robust workforce", and help alleviate staff retention issues. 

The package would be implemented over a five-year term and funded through an increase to Vote Health. 

Clark thanked unions and employers for playing a constructive role in negotiations. 

Public Service Association assistant national secretary Kerry Davies said the workers' "long fight for equal pay" was over.

"The mental health and addiction support sector urgently needs more staff, and this should help to recruit and retain skilled and dedicated workers.

"Our members stood together and now they're getting what they deserve."

 - Stuff