Unions have agreed to drop legal action over pay for disability support workers after the government said it would put up $90 million to phase in minimum wages for sleepover shifts.
The support workers have not been paid the $13 an hour minimum wage for sleepover shifts with disabled people, receiving instead a much lower allowance, and their case has reached the Supreme Court.
Health Minister Tony Ryall said on Monday $90 million would go towards phasing in minimum wage rates by 2013, and an extra $27.5 million would go towards back-pay liabilities.
"The employers, the union and the Crown have agreed to seek to discontinue litigation currently in front of the Supreme Court."
Providers of disability support services are also putting in money and Mr Ryall said the agreement was a fair one.
NZN