Junior Doctors Avoid Strike Action With New Two Year Six Percent Pay Increase Agreement

STONZ union reaches a two year pay deal with Te Whatu Ora including a $3000 lump sum and improved conditions, avoiding industrial action for 1800 doctors.

By: AXL Media

Published: Apr 29, 2026, 2:47 AM EDT

Source: RNZ Pacific

A Successful Negotiation Without Industrial Friction Junior doctors across New Zealand's public hospitals have secured a new collective agreement that promises financial growth and improved working conditions through 2028. The deal, brokered by the Specialty Trainees of New Zealand (STONZ) union and Te Whatu Ora (Health NZ), includes a 2.5 percent pay increase in the first year followed by another 2.5 percent in the second. By reaching this consensus after only three months of talks, the union has managed to avoid the strike actions that have historically disrupted hospital services.

Financial Incentives and Workforce Support In addition to the baseline salary increases, the agreement features a one-off cash payment of $3000 for current members. The deal also addresses long-standing logistical concerns for Resident Medical Officers (RMOs), who frequently rotate between different hospitals for specialized training. New provisions offer increased support for relocation costs and better rates for "additional duties," incentivizing doctors to pick up extra shifts during periods of high demand without the threat of burnout-related disputes.

Strategic Gains for Parents and Trainees Beyond the direct financial uplift, the union successfully negotiated for structural improvements aimed at workforce retention. Enhanced rates for parents returning from parental leave and better support systems for those relocating represent a strategic effort to keep junior doctors within the New Zealand public system. STONZ President Jordan Tewhaiti-Smith described the outcome as a "huge win," noting that the seamless transition from the previous agreement ensures there will be no lapse in terms or conditions for the critical hospital staff.

Health NZ Validates Clinical Workforce Importance Te Whatu Ora has formally welcomed the vote, acknowledging the 1800 staff members who facilitate the majority of doctor-led hours in the public health system. Executive National Director Robyn Shearer emphasized that RMOs are a foundational component of the clinical workforce. This agreement is seen as a stabilizing force for the health sector, especially as bargaining for other major groups such as senior doctors and nurses has reportedly stretched into its second year without resolution.

Maintaining Service Continuity in Public Hospitals The timing of the deal is critical for hospital manage...