Fair Work announces 15% pay increase for Aged Care workers
The full bench of the Fair Work Commission recently announced its interim decision to award a 15% pay increase to Aged Care workers in direct care roles across various awards. The hearing included a major work value case for awards including the Aged Care Award 2010, the Nurses Award 2020 and the Social, Community, Home Care and Disability Services Industry Award 2010. The Commission also announced that there would be a process that would ensue to consider potential further pay rises for these workers, and that administrative and support workers would also be considered for a pay rise.
The original submission from the Federal Government to the Fair Work Commission back in August unmistakably favoured a wage increase and prefaced that funding would be backed by the Government for any award wage increases that arise from this case. Whilst this fuelled a highly anticipated wage case, it is still unclear as to when this increase will be passed down to direct care workers, it is however a welcomed step in the right direction.
Unions on the other hand were hopeful for a 25% increase in the hopes that higher salaries would resolve the labour shortages in aged care and bring workers back in the industry. The evolution of the aged care sector over the last decade has considerably increased the regulatory burden within the sector and in turn ramped up the level of complexity in delivering care to the recipients. Unions argue that the increased skills and expectations will equate to higher work value.
Should the unions succeed in their push for a further increase within the aged care industry, this will add pressure on other parts of the care sector such as childcare and disability care.
Aged care is undoubtedly an industry that has struggled to attract and retain staff to care for our ageing Australian population. Evidently, this was a finding supported by the 2021 Royal Commission, which depicted that low pay was a contributing factor to labour shortages within aged care. Furthermore, the Fair Work Commission stated that “existing minimum rates do not properly compensate employees for the value” of their hard work.
As such, the Commission has left the door open for future potential increases and is contemplating whether a gradual approach to the 15% increase is best suited. Whether the 15% is implemented in increments will be discussed later this month.
The Workplace Relations Minister Tony Burke expressed that “Aged care work is hard work — but it’s undervalued work” and that “this result is the first step in changing that”. In recognising that aged care is an area that will require further reviews to rectify current labour shortages, the Federal Government has made it one of its fastest growing spending areas with a forecast of more than 6 per cent over the next decade.
Later this month, we will find out how the 25% increase is applied and whether there will be further increases is unknown at this point.
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