900 F&P Healthcare staff to strike

UPDATED: Fisher & Paykel Healthcare chief financial officer Tony Barclay told NBR the company believed its pay offer was reasonable. “[We’re] obviously disappointed that we’ve received notice from the union, and certainly believe that our rates of pay are fair and competitive in the marketplace.”

He said it was possible for workers to increase their pay rate by upskilling; via inhouse training that Fisher and Paykel Heathcare. He said their waged employees’ hourly rate had increased by an average of 21% over the last four years.

“Right now we’re also somewhat struggling as an exporter with the high value of the New Zealand dollar as well.”

He did not expect the strike – if it occurred – to have significant medium-term consequences on their supply chain.

“It’s not as though it’s happening tomorrow. The offer’s still available and we’re still open to continuing discussions with the union. Discussions will continue – I think we need to sit down with the union and start that dialogue.”

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Fisher and Paykel Healthcare (NZX: FPH) is facing its first strike action after a wage offer rejection.

Union organisers EPMU and NDU have issued 14 days notice of strike action for 900 Highbrook plant staff; production, maintenance and distribution workers. This follows the workers vote to reject Fisher and Paykel’s latest collective agreement settlement offer.

Negotiations for the renewal of the company-wide collective agreement have been going on for more than three months. This is the first time that Fisher and Paykel Healthcare workers have voted to go on strike in the company’s history.

In a statement, the EPMU said the planned action was designed to ensure no health risk to company clients, but sent a strong message that Healthcare employees were prepared to take action for what is fair.

The Unions cite escalating cost of living factors as the main reason behind their members’ rejection of the company wage offer.

EPMU and NDU members are negotiating for a 5.7% pay increase. Fisher and Paykel Healthcare is offering 3% for 11 months followed by a further 2% for 11 months.

EPMU organising director Rachel Mackintosh said the company’s offer amounted to a pay cut when wage erosion by inflation was taken into account.

“The company’s financial performance over the last year does not justify giving its workers what amounts to a pay cut, especially when there have been significant productivity gains with the workforce shrinking by 10% over the same period.”

The company's forecast released last month indicated expected net profit after tax of $60 to $65 million for the financial year on operating revenue of between $515 and $530 million. The June quarter annualised CPI inflation figure was 5.3%.

Fisher & Paykel Healthcare management have not yet responded to NBR questions.