The aged care peak body, the Aged and Community Care Providers Association (ACCPA), is reluctantly supporting the Federal Government's April 2024 proposal to phase in the Fair Work Commission (FWC)'s Stage 3 wage rise for aged care workers.
In March 2024, the FWC announced the Stage 3 pay increases for aged care workers but the Albanese Government lodged a submission requesting the wage rises be staggered starting from 1 January 2025, with the second increase to commence from January 2026.
"The timing and phasing-in of the Stage 3 wage increases as proposed by the Commonwealth is disappointing and concerning to aged care employers and employees," ACCPA's submission to the FWC states.
"However given the Commonwealth is the “principal funder” in the aged care sector, the Joint Employers are commercially compelled to support that approach to ensure the ongoing viability of the Sector."
ACCPA also said implementing the pay rise by 1 July 2024 would not allow aged care providers enough time to update their Awards.
Unions push back
However, the unions are pushing for the Government to fund the pay rises from 1 July 2024.
A United Workers' Union submission to the FWC said delaying the wage rise until 1 January 2026 will mean aged care workers remain underpaid for another 18 months, almost two years after the FWC determined "the work performed by aged care workers has been historically undervalued".
The Health Services Union said the Government's proposal to phase in the Stage 3 wage rise "should be rejected" and the increases brought in from 1 July 2024, in part to avoid any confusion that any pay rises coming from the Annual Wage Review will be applied to the Stage 3 increase.
Any delay in the commencement of the Stage 3 increases beyond 1 July 2024, would result in aged care workers "continuing to receive rates significantly below the true value of the work they perform and will have the effect of perpetuating the historic and gender-based undervaluation of work of (the) aged care sector," the HSU submission said.
Claims that providers need more time to implement the Stage 3 recommendations is "unsupported by evidence, unpersuasive and fail to acknowledge that the Commonwealth has known the precise increases required since 15 March 2024".
The Australian Nursing and Midwifery Federation (ANMF) said in a submission that "it is time to finish what was started" and grant the Stage 3 pay rises "without further delay".
"As the ANMF previously submitted, aged care employees have been subsidising the profit margins of their employers, the Commonwealth budget, and the taxpayer for some time now. This situation should not be permitted to continue," the ANMF submission said.
The ANMF added that any pay rises awarded to nurses, which the FWC is still considering, should also be paid from 30 June 2024.
