REVEALED: MSD's $1.6 Million Union-Only Bonus

The New Zealand Taxpayers’ Union can reveal that the Ministry of Social Development paid taxpayer-funded bonuses exclusively to Public Service Association members before their collective agreement had even been signed by the union. An Official Information Act request revealed 5,459 FTE received the $300 member-only benefit, costing taxpayers $1,637,700.

Taxpayers’ Union Lead Investigator, Rhys Hurley, said:

“Among other bonuses for Te Reo capability and overtime allowances sits Clause 2.8.1, the ‘Lump Sum Payment': a union-favouritism clause dressed up as a good-faith benefit for union members but funded by taxpayers.”

“MSD paid out the more than $1.6 million to PSA members before the union had even signed the agreement, following a similar Health NZ deal earlier this year.”

“Only in the public service would a payout that effectively leaves taxpayers funding union membership fees even make it out of bargaining, let alone be paid out before any agreement had even been signed.”

“If the Ministry wants to hand out special payments to union members, then the responsible Minister should be signing off these agreements and justifying them personally.”