David Seymour says the change will help ECE centres stay viable and not pass on costs to parents. Photo: RNZ / Samuel Rillstone
The Associate Education Minister is changing who decides how much new Early Childcare Education (ECE) teachers can be paid, leaving it up to individual centres to determine their starting salary - rather than be set by the government according to the pay parity scheme with primary school teachers.
David Seymour says it will help ECE centres stay "viable" and not pass on costs to parents.
The education union says the change scraps pay parity rates for new teachers, undermining the scheme which took decades to secure. The Greens are concerned it will drive down wages and Labour says it means new ECE teachers will be at the "whim of their employers".
The Ministry of Education website explained from 1 July this year, education and care centres that are part of the pay parity scheme will be able to set the initial salary step for a newly certified teacher or teachers new to the ECE sector. The centres will no longer need to take into account "higher qualification groups, previous relevant work experience, and recognised service".
Seymour said under the pay parity regime, to qualify for government funding, EC centres must pay people at certain rates and increase their pay at certain periods as determined by the government.
"This is putting enormous funding pressure on the centers.
"They can't absorb it anymore, but the parents and the government, who are the funders of early childhood are also under real pressure."
He said the change gave a "very light amount of relief," meaning new teachers can start at a pay step "negotiated with their employer like most workers in the economy, instead of one stipulated by the pay parity regime."
The pay parity regime in practice, he said, might allow for somebody who had a Master's degree in mathematics to start at a higher pay rate than someone who might be better at working at an ECE, and have more relevant skills. Under the new programme, Seymour said the person with a Master's degree might be negotiated to be paid less initially while they built up their skills, then their pay would increase.
"The question is not whether people are recognised for their qualifications, but who recognises them.
"I have a strong belief that the people who operate early childhood centers up and down this country, who are there looking the person in the eye, are best placed to judge what their starting pay rates should be."
Photo: RNZ / Marika Khabazi
NZEI Te Riu Roa National Executive ECE representative Zane McCarthy said it was "simply another attack on teachers' pay." He said the change will mean new teachers won't need to be paid at a level that recognises their qualifications, skills or experience, leaving it to their employers to decide their beginning pay rate instead.
"It fundamentally undermines the pay parity rates we've fought for decades to achieve, and it disconnects a teacher's experience and qualifications from their pay rate."
He said it was being "touted as a cost saving for employers" when the change was actually "making up for a lack of government funding".
The union said the change will have far-reaching implications in a sector already experiencing a chronic teacher shortage.
"This will do nothing to attract people to the profession or retain them.
"It shows us how it plans to solve funding in early childhood education - not by investing in our youngest learners, but by cutting teacher pay to make up for the lack of funding provided to centres in the first place."
The Greens ECE spokesperson Benjamin Doyle said it was a "kick in the teeth". Doyle said the move would lead to a reduction in wages over time, which would lead to more teachers walking away.
"Make no mistake, this is a move by the government to ensure that pay increases for teachers stay low, while cutting costs to employers."
Labour also slammed the change, saying new ECE teachers would be at the whim of their employers who will choose what they're paid, regardless of any higher qualifications
Labour's ECE spokesperson Jan Tinetti said ECE centres will have a harder time attracting recent graduates, "a devastating blow for a sector already struggling with teacher numbers".
"We introduced pay parity to ensure we could build the ECE workforce back up and reduce turnover."
Seymour said there's no reason new teachers won't be paid the "going rate", it just won't be set by a "rigid government framework".