The 15 per cent interim pay rise awarded by the Fair Work Commission to the aged care workforce neglects around 100,000 workers in the sector.
The FWC’s ruling announced on Friday afternoon does not include catering, cleaning, laundry, maintenance and administration staff, Grant Corderoy, Senior Partner at StewartBrown, told The SOURCE today.
“The fiscal cost of the increase is likely to be around $1.9 billion per annum based on the current staff costs for the direct care workers,” Grant said. “In addition to this, is the 15% increase on the additional subsidy required to move to 200 minutes ($120 million pa) and then to move to 215 minutes plus 24/7 RN ($125 million pa),” he said.
Grant also stated that if the Federal Government does not fully fund the pay rise to include superannuation, sick leave, pay leave, Long-Service Leave and workers compensation, aged care providers face costs approaching $372 million.
Non-core staff insulted
Chris Mamarelis, CEO of Whiddon, which owns and operates 19 residential aged care homes across NSW and Queensland, told the AFR the decision to exclude support staff and non-care staff from the interim judgment is insulting.
“[Non-care staff] are no less in terms of the work they’re doing, and the work they perform, and they should be included immediately with that decision.”
Frank Price, RFBI CEO, said the exclusion of non-care staff from the interim judgment “created an us and them” in the organisation’s 22 aged care homes.
“I had my chief of catering ring me up to say ‘here’s this wonderful news’, and I directed her to the appropriate clause and said ‘you’re not covered’,” he said.
“My main problem as the CEO of an aged care organisation is that I now need to manage expectations.”
The FWC, in its interim ruling, stated that the interim increase "does not conclude its consideration" of the unions' application for a 25% boost for other aged care employees, in administration and support.
However, the evidence for the work value of support and administrative employees "is not as clear or compelling" as that for direct care workers" and varies as between classifications".
Timing of pay rise still uncertain
The bench said it will determine the timing of the 15% rise in the next stage of the case, while it will determine whether a larger increase is justified in the third stage.
It said it will hold a mention on November 22 to issue directions for stage 2, which will include taking up the joint employers' and Federal Government's suggestion that they receive an opportunity to make further submissions on timing of the increase, which it noted is important because of the federal role in funding the sector.
Gerard Hayes, secretary of the HSU (Health Services Union), said the 15% pay rise for Aged Care and SCHADS Awards and for nurses working in aged care covered by the Nurses Award is “a down payment but nobody should be mistaken.”
“This will not fix the crisis. We still have massive unfinished business in aged care,” he said.
