SUM - Summerset Group

[iceman]

This is going to affect the bottom line profit of all the listed companies big time, the more the company relies on care beds for income, the bigger the hit will be.

couta1 do you think it is fair to say that the industry have brought this on themselves by paying very low wages for far too long ? I have a friend working as an age care worker and find her earnings shameful. What do you think based on your vast experience

[Carpenterjoe]

Seems bloody low to me, no way in hell could I live on $23ph. With intentions of an increase to 27ph in five years seems pretty criminal.

[BlackPeter]

It's only the beginning of pain folks for the sector, next up will be nurses hourly rates which will be measured against those working for the DHB's and were talking a big difference in hourly rate. And then there are the cleaners and activity staff. Baton down the hatches folk and fasten your seatbelts, could be a wild ride going forward.

The pain will not be on the industry, but on the old folks (who either will pay more or accept lower care and living standards) and the taxpayer (who will fork out the money for the old folks who can't afford to pay). If it makes no sense anymore to invest in this sector, than investors money will just go somewhere else, the industry will stop developing new retirement villages ... and it will be up to the government to look for an alternative solution to house the elderly who can't pay for the increased caregiver wages (one way or another).

Obviously - some elderlies might choose to retire in Malaysia or Thailand instead ... lower caregiver wages and better weather.

To look after the rest ... looking forward to increased taxes for everybody!

[couta1]

couta1 do you think it is fair to say that the industry have brought this on themselves by paying very low wages for far too long ? I have a friend working as an age care worker and find her earnings shameful. What do you think based on your vast experience

Some players have, I know Kristine Bartlett well and Terra Nova were the worst of offenders at the time,she sought a modest pay increase before all the legal action started but being a group of accountants, they played hard ball and all this is the result. I know Ryman have been paying more than the minimum wage to many of their workers for many years now in anticipation of this ruling. The problem is that the not for profits like Presbyterian support who don't have property development will find themselves in a very difficult position after this ruling, where will the extra money come from to pay the extra wage bill? Unless the Govt increases the subsidy rates significantly, many not for profits will go to the wall, which is a crying shame because many of them offer excellent care models to their residents. I'm picking the Govt will be forced to up their game here.

[couta1]

Seems bloody low to me, no way in hell could I live on $23ph. With intentions of an increase to 27ph in five years seems pretty criminal.

Big step up from the $16 most are now getting.

[Carpenterjoe]

Anyone know what % of summersets staff full under this situation?

[trader_jackson]

Seems bloody low to me, no way in hell could I live on $23ph. With intentions of an increase to 27ph in five years seems pretty criminal.

Isn't $23 an hour nearly the average wage in New Zealand?

To clarify, are you implying nobody can live on $23 an hour?
I have a feeling there are hundreds of thousands of people in this country who have to live on $23 an hour or less, with the prospect of just above CPI increases in their wages, not just for 5 years, but decades... and they aren't just the people being talked about in the article above.

And yes, I agree with BlackPeter... the government will have to increase funding to all care facilities (currently outside of the government ones) otherwise they will "up and leave" or quality will greatly deteriorate and we will have a UK problem where some companies, and likely not for profit, fall over and the government is forced to provide all care based facilities... good thing for all listed retirement operators, is that they are moving towards and ORA model with care beds, with many offering 'premium' services as a way to increase revenue. I also believe they pay well above minimum rates already.

[dobby41]

Some players have, I know Kristine Bartlett well and Terra Nova were the worst of offenders at the time,she sort a modest pay increase before all the legal action started but being a group of accountants, they played hard ball and all this is the result. I know Ryman have been paying more than the minimum wage to many of their workers for many years now in anticipation of this ruling. The problem is that the not for profits like Presbyterian support who don't have property development will find themselves in a very difficult position after this ruling, where will the extra money come from to pay the extra wage bill? Unless the Govt increases the subsidy rates significantly, many not for profits will go to the wall, which is a crying shame because many of them offer excellent care models to their residents. I'm picking the Govt will be forced to up their game here.

she sought !!! (not sort)
and Ryman have paid more than the minimum wage to their care workers for a long time but not much more!
The increase will be huge for most, if not all, the care workers and so it should be.
Govt will increase funding - they'll have to.

[dobby41]

I love how people love the idea of everyone getting paid more. The only hidden thing is, it comes at a cost to someone else.

In most cases the customer has to take on most or all of the extra cost.

I presume you would rather live in a low wage economy?
Myself - I'd rather live in a fair wage economy and pay the price accordingly.

[couta1]

she sought !!! (not sort)
and Ryman have paid more than the minimum wage to their care workers for a long time but not much more!
The increase will be huge for most, if not all, the care workers and so it should be.
Govt will increase funding - they'll have to.

Picking on a one word mistake is rather pathetic, really?