# Web Capture: Care Workers' Unions Take Health NZ to Court Over Travel Costs

**Source:** RNZ News
**Original URL:** https://www.rnz.co.nz/news/national/591069/care-workers-unions-take-health-nz-to-court-over-travel-costs-as-petrol-prices-soar
**Date accessed:** 10 June 2026
**Capture type:** Full article summary

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## Headline

**Care workers' unions take Health NZ to court over travel costs as petrol prices soar**
_Date: 30 March 2026_

## Key Details

| Detail               | Information                                   |
| -------------------- | --------------------------------------------- |
| **Claimants**        | PSA (Public Service Association) and E tū     |
| **Respondent**       | Health New Zealand (Te Whatu Ora)             |
| **Filed**            | 31 March 2026, Employment Relations Authority |
| **Legal basis**      | Alleged breach of Wages Protection Act        |
| **Workers affected** | ~23,000 home support workers nationally       |

## Core Issue

Health NZ does not pay mileage:

- **To/from home** for the first/last client
- For trips taking clients to **supermarket, appointments, or errands**
- Workers must fund and maintain their own vehicles out of wages

The unions argue Health NZ is the "controlling third party" as the funder of all home support workers — making it an illegal requirement for workers to spend wages on tools of trade.

## Current Mileage Allowance

- ~50 cents per kilometre (unchanged since 2022 — note: since increased to 82.5¢ on 2 April 2026)
- Worker pay range: minimum wage up to ~$29.10/hour

## Health NZ Response

- Denies workers are its employees; responsibility lies with contracted providers.
- Acknowledges current funding arrangements recognise cost pressures.
- "Currently considering funding settings for 2026/27, including the impact of rising fuel prices on third party providers."

## Case Study — Great Barrier Island

- Petrol price: **$4.50/litre**
- Worker Kerris Adlam drives **164 km/day** visiting 3–4 patients, reduced to 3 days/week
- Only paid mileage between clients, not to/from home or for client errands
- "We're going to start seeing tragedies, we're going to start seeing people not getting the care they need."

## Significance

This legal action represents a structural challenge to the home care funding model. If successful, it could force fundamental changes to how travel costs are compensated for ~23,000 workers. Even if unsuccessful, it creates a political pressure point ahead of the 2026 election.

## Related KB Files

- `2026 - Beehive - Web Capture - Home Care Workers Mileage Rate Increase.md` (measures the temporary 82.5¢/km fix)
- Party Position Matrix: Home Care, Carers and Community Support
- `05_Funding_and_Subsidies`

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_Part of the NZ Seniors Knowledge Base — automated capture_