Fire and Emergency seeks mediation in long-running pay dispute

Organisation seeks mediation while unions challenge restructure

Fire and Emergency seeks mediation in long-running pay dispute

Catastrophe & Flood

By Roxanne Libatique

Fire and Emergency New Zealand (FENZ) has applied to the Employment Relations Authority (ERA) for independent facilitation to resolve its long-running industrial dispute with the New Zealand Professional Firefighters Union (NZPFU). The application comes as the organisation simultaneously faces legal action from unions challenging its proposed restructure methodology.

The dual conflicts underscore growing tensions between the organisation and its workforce amid extended negotiations over remuneration and organisational restructuring – developments carrying potential implications for insurance levies that fund the majority of the agency’s operations.

Lengthy bargaining stalemate prompts facilitation request

Collective bargaining talks between Fire and Emergency and the NZPFU began on July 16, 2024, and have progressed without resolution for more than 16 months. Fire and Emergency contends that the current gap between the parties’ positions is significant and has not been narrowed through conventional negotiation.

Fire and Emergency’s assessment indicates that the union’s latest settlement demand substantially exceeds the organisation’s offer by a multiple of three. Deputy national commander Megan Stiffler explained the rationale behind the facilitation application. “We’re asking the Employment Relations Authority to provide facilitation to help bring the parties together because of the protracted nature of bargaining and the impact on public safety from prolonged and repeated strike action,” she said.

The organisation presented a three-year compensation proposal featuring a 6.2% average increase. Under this package, senior firefighter compensation would advance from $80,682.82–$87,364.25 to $85,789.14–$92,893.43, with supplementary overtime and allowances contributing an average of $38,823 annually.

Fire and Emergency stated its proposal compared to other public sector agreements and highlighted the wage trajectory of its workforce. Over the preceding decade, senior firefighter compensation has risen cumulatively by 37% – exceeding general workforce wage growth by more than 10 percentage points, according to the organisation’s analysis.

“We’ve approached bargaining in good faith with the goal of reaching a fair, sustainable, and reasonable settlement with the NZPFU,” Stiffler said. She further noted that “there’s a gulf between us at the moment” and described facilitated bargaining as “the next logical step to resolve the dispute and keep our communities safe.”

Unions challenge restructure process and timing

Simultaneously, the Public Service Association (PSA) and NZPFU initiated legal proceedings on Nov. 17 contesting Fire and Emergency’s restructure announcement. The unions allege the organisation failed to satisfy collective agreement consultation requirements before publicising workforce reduction plans affecting approximately 140 net positions.

The unions characterise the consultation process as inadequate. Fleur Fitzsimons, national secretary of the PSA, outlined concerns regarding the engagement timeline and methodology. According to Fitzsimons, Fire and Emergency provided only an embargoed proposal copy one day before public disclosure, despite union requests for consultation spanning from Oct. 29 through Nov. 12.

NZPFU national secretary Wattie Watson raised operational implications stemming from the proposed staffing reductions. “The workers who face losing their jobs are all critical to ensuring firefighters access the training and support they need to respond to emergencies properly trained and resourced,” Watson said. The union highlighted potential consequences for training continuity and community resilience functions.

Restructure scope and implementation schedule

Fire and Emergency announced its restructuring proposal on Nov. 14, targeting approximately 700 roles with a net reduction of roughly 140 positions. The organisation indicated that frontline firefighting positions would remain intact, with modifications concentrated in support operations. The organisation plans to conclude consultation activities and announce final decisions before year-end, with implementation expected during the first quarter of the following year.

Insurance levy funding and cost dynamics

Fire and Emergency’s budget structure reflects reliance on insurance-based funding mechanisms. During 2024–2025, the organisation received $796.7 million from insurance levies and $41.3 million from supplementary sources, with insurance levies comprising approximately 95% of operational funding. In pay negotiations, Fire and Emergency cited budgetary constraints linked to rising insurance costs and cost-of-living considerations affecting the general public. The organisation maintained approximately 14,900 positions, operated 1,300 fire trucks across more than 600 stations, and responded to nearly 89,000 incidents during the 2024–2025 fiscal year.

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