The Australian Nursing and Midwifery Federation (ANMF) is calling on aged care providers to pass on in full to aged care workers the 15% pay rise recommended by the Fair Work Commission (FWC).

The ANMF, Australia’s largest union, claims aged care providers are rushing to lock in workplace agreements with wage increases lower than the 15% recommended by the FWC and will “pocket the difference” from government funding.

ANMF Federal Secretary Annie Butler said, “Many employers on the ground are saying that unless they are ‘legally required’ to pass the money on they will simply use their discretion about how they spend it.”

Last November, the FWC recommended a 15% pay rise for aged care workers, and last week broadened the definition of who will receive the rise, and identifying 30 June 2023 as the date the increase should be paid.

Ms Butler is calling on the Government to ensure there is transparency and accountability around the new funding “so the money gets into the pockets of aged workers, not the wallets of wealthy providers.”

“There need to be rules or triggers imposed by the Government that require aged care providers to pass the additional funding on to higher wages.

“It must be used for the purpose it is provided – higher wages. Otherwise, the aged care staffing crisis will not be addressed and pay rates won’t increase sufficiently to enable the attraction and retention of nursing and care staff.

“The Government must take a strong position now to fulfil one of its key election promises and make sure that aged care workers get the wage increases that they’re rightly entitled to and have been waiting for.”

The Victorian Branch of the ANMF has filed actions against Not For Profit aged care providers Lifeview (which has four aged care facilities) and mecwacare (14 facilities, home care), claiming these providers won’t agree to include a clause in their proposed EAs requiring transparency about the funding they receive and a commitment to pass on all the money provided by the Government to cover the FWC’s recommended increase.

Ms Butler said other providers are also refusing to commit to passing on to employees all the additional funding.