The Australian Paramedics Association says NSW Ambulance is refusing to fund intensive care paramedics if they transfer to a new station, instead forcing them to accept a general paramedic position.
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However NSW Ambulance refutes the claim and says ICPs knowingly apply for the general positions "through choice".
The APA, the union representing paramedics and support staff, has commenced industrial action over the matter amid ongoing talks in the Industrial Relations Commission.
The APA says NSW Ambulance is citing a lack of available funding to cover the higher clinical skills of ICPs and is choosing to fund positions at select ambulance stations, rather than funding additional pay for paramedics who qualify as ICPs.
"NSW Ambulance is playing hardball and forcing specialist paramedics transferring between stations to drop their specialist skills so that their pay can be reduced," the APA's Chris Kastelan said.
"NSWA is putting lives at risk by actively asking paramedics who have done additional live-saving specialist training to deskill."
Two APA members with ICP experience have been told their new positions at Hamlyn Terrace and Ettalong stations will not be supported as ICP roles. Their situations could be replicated throughout NSW.
Mr Kastelan said NSW Ambulance had indicated it would prevent ICPs from being able to respond by removing their ICP status from the computer aided dispatch (CAD) system, along with removing their specialist equipment and medication.
The APA has responded by asking its members not to comply with any NSW Ambulance directive to remove an ICP's status from the CAD or gear from a vehicle.
"Intensive care paramedics have specialised skills, equipment and medication," Mr Kastelan said.
"Who will take responsibility when a patient dies because a specialist paramedic was blocked by NSW Ambulance from performing a life saving procedure?"
NSW Ambulance says it is continuing to consult with unions "regarding the appropriate areas of community for ICPs across regional NSW".
"From time to time ICPs will apply for paramedics positions which are not classified as specialist roles, for personal reasons," a spokesperson said.
"It is not correct to say ICPs are being forced to transfer to stations to work in general paramedics roles. These are advertised positions that ICPs apply for through choice."
The NSW Ambluance spokesperson said all paramedics and ICPs were paid in accordance with the award.
"Where ICPs are successful in obtaining in an ICP position at a new location they are paid ICP rates," the spokesperson said.
"Like any other organisation, NSW Ambulance pays staff according to the terms and conditions of the role they hold.
"The NSW government is investing more than $1 billion in NSW Ambulance in 2019-2020 - a record budget - which will see the deployment of 221 paramedics and call centre staff. These staff are the second tranche of the 750 paramedics and call centre staff to be deployed over four years."