By Friday, 19 September 2025, 8:26 Pm Article: Rnz

Copyright scoop

Hill, ReporterLillian
Hanly, Political

Senior doctors say no need for
forced settlementHealth NZ argues
it’s out of options to break
impasseHealth Minister denies
intervening – but admits he wants “an end” to the

The senior doctors’ union has
slammed Health NZ’s attempt to force it into a settlement as
“needless” – and likely to make its members more angry – as
they prepare to walk off the job again next

Health NZ said on Thursday, after more than a
year of failed negotiations with the Association of Salaried
Medical Specialists (ASMS), it would now apply to the
Employment Relations Authority to fix the terms of the
collective contract.

If the authority was satisfied
there had been a “serious and sustained” breach of good
faith, and all reasonable alternatives had been used up, it
could enforce a binding contract on the parties.

executive director Sarah Dalton said Health NZ’s move –
which came ahead of the
looming 48-hour strike – was unprecedented “and
unwarranted”.

The case would not meet the threshold
for intervention by the authority, in her view.

don’t think this is a situation that requires pay

“What it requires is for Health NZ – and for
the government that funds them – to recognise that senior
doctors have been taking real pay cuts for several years

“We haven’t had any meaningful response from the
employer about workforce planning, about investment in
salaried staff, about how they plan to address widespread

“We just need an end to the chaos and a
commitment of real funds and time to invest in doctors and
dentists, and get this sorted.”

Health NZ’s acting
chief executive Richard Sullivan, who spent three days at
the bargaining table this week, said the agency had
“listened carefully” to what the union was

Its improved offer in response amounted to an
investment of $160m over a 16-month term, he said.

are disappointed ASMS has chosen not to progress bargaining
on the basis of this improved package, which we consider to
be a fair and reasonable way forward.”

Sullivan said
he was disappointed the Employment Relations Authority had
been approached after terms over the pay settlement couldn’t
be reached.

He told Morning Report on Friday Health
NZ’s focus over the last week had been to try and remove the
strike and reach an agreement.

“We’ve had, I guess, a
prolonged period of almost a year now, many days of formal
bargaining, I think 11 or 12 mediation, facilitated
bargaining.

“I’d like to say that we have listened,
certainly over the last week we’ve come forward with
significant change to our offer. We’ve put forward over $160
million for the 5500 doctors over the collective

“We’ve tried to shorten the term, we’ve
offered up a $40 million extra fund that they could use to
work out how to support the senior doctors. But it has been
frustrating that that hasn’t led to the ASMS team being able
to come back with a counteroffer that we could work with,
and so we feel that we’ve done everything we can, which has
taken us down this pathway.”

Sullivan said there had
been a sustained breach of good faith from the ASMS

think the challenge is when you increase your offer by, you
know, $30 million materially over a period between July,
we’ve reduced the length of our settlement by a third, which
means that there’s obviously opportunity for future pay
increases, and we’ve worked really hard to try to meet the
cost of the conversation. But as I say, unfortunately, we’ve
had no counteroffer to work with.”

He said while he
accepted negotiations were slow off the mark, he believed
that responsibility was on both the union and Health

“I don’t accept the costings issue. We’ve been
very clear about the total dollars on the table, and we’ve
been very clear about the length of terms, which I say we’ve
reduced, but it’s been very hard to move that forward when
you don’t have something to work with.”

Dalton maintained the offer still amounted to a pay cut in
real terms for most senior doctors and dentists “at a time
when recruitment and retention is critical”.

NZ refuses to recognise a full year of delay to the
bargaining process due to its inability to come to the table
with a pay offer. Its bargaining team was not assembled
until after the collective agreement expired and the first
offer was not made until April 2025.”

negotiaters were not willing to accept the “sugar hit” of
lump sum payments, she said.

“We want meaningful
investment. We suggested they take that money and use it to
lift Continuing Medical Education, which hasn’t increased
since 2009.”

Health NZ’s negotiating team did not
appear to understand what they were even putting on the
table, she said.

Requests for Health NZ’s own finance
people to test the implications of their offers resulted in
“contradictory information”.

“They’re in hurry to
settle now, which is fine – but why weren’t they in a hurry
two weeks ago? A month ago? Three months ago?”

were extremely reluctant to strike, but unfortunately the
only time there was any attempt by Health NZ to lift the
offer on the table was when strike action was called, she

“I know leadership at Health NZ were hoping
the strikes would be lifted, but there’s not been enough
progress. We remain open to discussions.”

Minister Simeon Brown’s comments characterising the strike
as “a decision by some of the most well-paid public servants
in New Zealand to walk away from patients and cancel care”
was likely to anger doctors, she said.

“They are upset
that patients are missing out on care every single day
because of this Government’s approach to health, which is a
disinvestment approach, as our paper
on health funding has shown.”

The union also
disputed the Health Minister’s repeated claim the average
remuneration for a senior doctor (including overtime and
allowances) was $343,500.

“The last time he said that
we got storm of correspondence from frustrated members
saying ‘If I earned that much, I would have no
complaints’.

“It’s all very well to say doctors are
well paid, but we can’t do without them. It is a massive
commitment of time and resources to train as
specialist.

“New Zealanders want to know Health NZ is
properly staffing our hospitals, and that is not the

Union ‘playing with patients’ lives’ –

Health Minister Simeon Brown said he had not
directed Health NZ to engage the Employment Relations
Authority, but acknowledged he wanted to “see this brought
to an end.”

He was scathing of the ASMS decision to
proceed with next week’s strike, which followed a
24-hour strike in May.

“That is putting patients
at risk. Patients’ care is being delayed.

these people who’ve already been waiting too long on waiting
lists, are having their care delayed even further, and
ultimately this needs to be brought to a head, and that’s
why Health New Zealand is taking that action.”

NZ had continued to come to the bargaining table, putting
offers on the table, and trying to resolve issues, he

“What’s happening is the union is playing
politics with patients’ lives – that is frankly
unacceptable.

“These are some of our most highly paid
and most critical public servants.

“They play a
critical leadership role in our health system, they should
be putting patients first, resolving these issues around the
bargaining table, rather than delaying the care of thousands
of patients who have already been waiting too

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