The Government has cautioned the Fair Work Commission (FWC) against further wage rises for aged care workers, warning further rises could have a "broader impact" on wages in other sectors.
The Government submission to the FWC, by Australian Government Solicitor Paul Vermeesch, states the FWC "should not award" additional wage increases sought since the original Work Value applications were submitted in August 2022, but that it "does not express a position" in relation to the increases sought in the original application.
The submission also states that wages for direct care workers have already increased by about 25% since the original applications - for a 25% increase - were made. As well as the 15% awarded to aged care workers through the Work Value Case, the FWC awarded a 5.75% increase in the Minimum Award Wage this year.
The FWC hearings in December will consider pay rises for indirect care workers, which were part of the original applications but left out of the 15% wage rise for direct care workers announced in November 2022.
In September 2023, the Australian and Nursing Midwifery Federation (ANMF) sought to increase nurses' wages in line with the Metal Workers Award, which is often used as a wages benchmark. The application would mean an additional 35% increase in wages.
The submission states the Government wants "to be heard" on the "timing and phasing in" of future wage decisions in relation to the FWC in the Aged Care Work Value case.
"The Commonwealth’s fiscal strategy is focused on putting the budget on a more sustainable footing over time and an award increase that is not anticipated by the Commonwealth will have an impact on the budget decisions of government."
You can read the submission here.
