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Australia

Federal government promises to fund potential pay rise for aged care workers

Aged care workers accompany a resident down the hallway of their facility

The Federal Government has promised to pick up the bill for any potential pay rise for aged care workers in a submission to the Fair Work Commission (FWC).

The independent wages umpire is considering a case brought forward by the unions, calling for a 25-per-cent pay increase for 200,000 residential and home care workers.

While stopping short of nominating how much wages should rise, the Commonwealth argued in its submission that the existing award rates do not reflect the value and skills of the sector.

Minister for Employment and Workplace Relations Tony Burke said the COVID pandemic had exacerbated pressures on the workforce and underlined the case for a pay increase.

“Right now, there is no doubt their work is undervalued. We need to change that,” he said.

“Our government is prioritizing these workers as we fight to get wages moving again.”

Unions celebrate commitment

The Health Services Union welcomed the government’s submission, arguing the aging population and changing expectations had made the roles more complex.

National president Gerard Hayes said the government’s submission was a shot in the arm for the sector.

“Older Australians will not get the care they deserve until we can attract and retain a workforce to look after them,” he said.

“The Government has understood this and taken action.

“We are hopeful the Fair Work Commission will make a decision that recognizes the work value of aged care.

“A decent pay rise is beyond overdue.”

A man in a black shirt and glasses sits at a desk
Health Services Union president Gerard Hayes says Australia has allowed aged care workers to be exploited and overworked for too long.(ABC News: Laura Brierley Newton)

The Interim CEO of employer group Aged and Community Care Providers Association Paul Sadler said the case for a pay rise was strongest for registered and enrolled nurses and personal care workers.

“It would not surprise me to see that the increase for these key workers will be certainly up towards that 25 per cent level,” he said.

“The sooner this decision is made the better, but we do support a staged implementation of the increase.”

An election promise

Lifting the pay of aged care workers was a key recommendation of the Royal Commission into Aged Care Quality and Safety’s final report last year.

During the election campaign, Labor promised if it won the government it would make a submission to the FWC in support of a pay rise for the workforce.

The commitment was criticized by then-prime minister Scott Morrison, who questioned how Labor would fund any increase, instead opting to give aged care workers across the country two standalone payments of $400.

Workforce shortages

Unions and industry groups have argued pay increases are needed to attract and retain skilled workers for the sector.

Aged Care Minister Anika Wells said a pay rise was the first step to addressing workforce shortages.

“We need more staff in aged care and a pay rise is the start of ensuring workers are rewarded for the crucial roles they play,” she said.

“One of the main causes of the gender pay gap is low pay and poor conditions in care sectors like aged care, where the majority of workers are women.

“Increasing wages in aged care is essential to ensuring that men and women are paid equally.”

Wells is sitting next to some out-of-focus colleagues. She has her hand under her chin.
The Albanian government has committed to funding any proposed wage increase.(ABC News: Matt Roberts)

If the unions’ case is successful, the FWC would vary the aged care award, the document outlining minimum pay rates and conditions for the sector.

That change could see the minimum wage for aged care workers rise by at least $5 an hour.

The minimum wage of a qualified personal carer would be bumped up from $23.09 to $28.86 an hour, dependent on salaries when the application was lodged.

Under the union’s proposal a level 1 aged care worker could see their weekly pay increased from just over $800 to more than $1,000.

The case has been before the FWC since 2020.

It is due to hear from the government and unions when it holds hearings this month.

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Categories
Australia

Government flags possible reform of $7b Workforce Australia jobseeker program a month after launching it

Tony Burke wears a black suit and blue tie with red pin as he speak to media at Parliament House.

The federal government has flagged it is open to reforming Australia’s brand-new controversial $7 billion unemployment scheme and has announced the creation of a parliamentary committee to scrutinize it.

It comes following months of concern and confusion from jobseekers prior to the launch, as well as a deluge of criticism from them since.

Employment Minister Tony Burke said on Tuesday the federal government would create a lower house committee to examine the implementation of Workforce Australia, the program that replaced the maligned jobactive program last month.

Workforce Australia was passed under the Morrison government and voted for by Labor prior to the May election. Contracts with job service providers worth $7 billion were also signed.

Under the shift, those engaged in mutual obligations earn points for activities in return for the sub-poverty line JobSeeker payment.

But Mr Burke said on Tuesday while Labor supported the principles behind Workforce Australia, including mutual obligations, some aspects required “fresh parliamentary scrutiny and oversight”.

“While the [Coalition] spent nearly two years designing and building the software for the new system, they did not properly explain it to the Australian people,” he said.

“We are concerned we have ended up with a system that is driven more by the details of contracts with providers than the legislation the previous government brought to parliament.”

Mr Burke said the committee would take evidence on “where best practice is occurring and where it is not”.

“It will recommend where we can make long-term reforms, as well as where we can make more immediate improvements,” he said.

The committee is scheduled to report back to parliament in September 2023.

System needs to be ‘fit for purpose’

The transition to Workforce Australia has been shaky.

In the lead-up to launch, jobseekers said the changes had been poorly communicated, with some still unclear about what the changes meant for them and their JobSeeker payments just days before the program kicked in.

Social services advocates also voiced concern many of the “punitive” aspects from jobactive remained a part of Workforce Australia, and a new points-based system would force people into more mutual obligations sooner.

Since the scheme launched, jobseekers have reported a raft of issues, including being unable to access the app and online portal, being recommended jobs based on states they do not live in, and further confusing communication.

Mr Burke noted that on Tuesday, saying it appeared “user experience of the system varies wildly from person to person and provider to provider”.

A sign displaying the centrelink and medicare logos.
Workforce Australia was passed under the Morrison government and voted for by Labor when it was in opposition.(ABC News: Danielle Bonica)

Labor made a series of last-minute tweaks to the original design of Workforce Australia last month.

It also extended a suspension on payment penalties, though advocates want to see it stretched further until at least October.

The Australian Council of Social Service has welcomed the creation of the parliamentary committee.

“For too long, people who’ve been looking for paid work have been blamed for being unemployed rather than actively and positively supported to find jobs,” acting CEO Edwina MacDonald said.

“The announcement of this review is a good move to ensure the voices of people who use these services inform the reform process, and that feedback from the experiences of the early days of this new model can be used to ensure Workforce Australia is fit for purpose .’

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